EMEA News
Suez Canal Upgrades: Transit Times to Reduce By 40%
Suez Canal Authority (SCA) analyst Hossam Abdelkarim last week told an audience at RESCON 2014 that improvements planned for the Suez Canal will reduce transit times from 18 to 11 hours, Seatrade Global reports.
The SCA also said it would introduce a long haul rebate system to make using the Canal more attractive compared with the Cape of Good Hope route, particularly at times with high bunker prices.
The Egyptian government first announced in August what SCA head Mohab Mamish termed a "giant project."
The work will see capacity on the route will increase from 49 to 97 standard vessels per day when the improvements are complete.
Abdelkarim said that annual revenues for the Canal were forecast to rise to $13.2 billion in 2023 from $5.1 billion this year.
The SCA plans to invest $8.4 billion building a new 72km channel to significantly expand capacity, says the report, and according to Abdelkarim the SCA has been able to rapidly secure financing at 12 percent interest.
According to the report, Suez currently sees 8 percent of global trade put through the Canal.
In tandem with the Canal upgrade project, the Suez Canal Area Development Project, which aims to develop areas such as Port Said, Ismailia, Suez, and Ain El Sokhna, is moving forward.
The SCA said in August that the new Canal would feature bunkering stations along its eastern side.
