Americas News
Expanded Suez Canal Said to Give Shippers Savings of 5-10%
The Bank of Alexandria believes the new Suez Canal will reduce total operating costs of maritime transportation companies by between 5 and 10 percent, local media reports.
The Bank's Intesa Sanpaolo Group research arm said in its study, 'New Suez Canal: Economic Impacts on Mediterranean Maritime Trade', that thanks to the Canal, transit time will be slashed from 18 to 11 hours, which in turn will benefit operating costs.
Intesa Sanpaolo reached its findings by studying traffic trends in the canal and the planning framework of the new infrastructure.
It also looked at the challenges to change maritime routes determined by shipping companies and port operators.
Dante Campioni, CEO and managing director of Bank of Alexandria, said, "The study highlights the importance of the new Suez Canal to commercial maritime traffic in the Mediterranean area."
It is believed the new canal will not only benefit transportation and logistics but other maritime-related sectors such as tourism.
However, the expanded canal has attracted criticism, such as from Argus, which noted earlier this year that while the canal now allows ships to travel concurrently in both directions and decreases waiting times, the expansion has not increased the tonnage allowance of the canal.
