Cairo, Dec 30: Egypt successfully tested a new 10 km extension at the southern end of the Suez Canal on Saturday, despite a significant drop in revenue due to ongoing regional instability.
The trial run, which involved two ships passing through a newly expanded section of the canal, marked a key milestone in Egypt’s efforts to increase the waterway’s capacity. The new stretch, part of an expansion of the canal’s two-way section, brings its total length to 82 km, up from the previous 72 km.
“The expansion will increase the canal’s capacity by an additional 6 to 8 ships per day and improve its ability to handle potential emergencies,” the Suez Canal Authority (SCA) said in a statement, to Reuters.
The Suez Canal, a vital artery for global trade linking Europe and Asia, has been a source of strategic and economic importance for Egypt. However, the country’s revenue from the canal has plunged significantly in recent months due to attacks by Yemen’s Houthi militants on vessels in the Red Sea. The militants have targeted ships in what they claim is solidarity with Palestinian groups in Gaza, further complicating the security situation in the region.
Egyptian President Abdel Fattah al-Sisi acknowledged the financial toll on the country during a speech on Thursday, stating that Egypt had lost approximately $7 billion in revenue from the Suez Canal in 2024. This represents a dramatic 60% decline from the previous year.
The latest expansion, which follows the 2021 grounding of the Ever Given, aims to enhance the canal’s resilience. The incident, in which the massive container ship blocked the canal for six days, underscored the need for a more robust infrastructure to handle global shipping demands.
Despite these setbacks, the Suez Canal remains one of the most critical shipping routes in the world, facilitating the swift passage of goods between Europe and Asia. The ongoing expansion project is seen as a necessary step in preserving Egypt’s role as a key player in global maritime trade.
The SCA said the new stretch of canal would also help alleviate congestion and reduce transit time for vessels navigating one of the busiest waterways in the world.
