Suez Canal celebrates 56 years under Egyptian control

Ships pass by fishermen in Fayed at Ismailiya near the Suez Canal. [Amr Abdallah Dalsh/Reuters]

Ships pass by fishermen in Fayed at Ismailiya near the Suez Canal. [Amr Abdallah Dalsh/Reuters]

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Egypt's Suez Canal recently celebrated the 56th anniversary of its nationalisation with a 3.6% revenue increase for fiscal year 2011-2012.

Ownership of the canal passed from France to Egypt during the reign of President Gamal Abdel Nasser, who nationalised the route on July 26th, 1956.

Just one day before the anniversary, Canal Authority Chairman Gen. Ahmed Ali Fadel announced that canal revenues topped $5.2 billion, while gross tonnage posted a 4.7% increase and total quantities of goods a 9.1% increase over the same period.

The proceeds of the first half of this year reached $2.5 billion, collected from 8,573 vessels that passed through the canal, Fadel said.

Lifeline for Egyptian economy

Professor of Political Economy at Cairo University, Dr. Nasser al-Assiouty, told Al-Shorfa that the global shipping lane is a "vital lifeline for the Egyptian economy" and has endured recent events remarkably well.

"[Canal] revenue remained relatively stable under the political and economic crises that hit the region and the world, holding steady in the post-January 25 revolution period and the blows the Egyptian economy sustained during that time," he said.

He said the canal "was not affected by political pressure and remained compliant with international conventions and agreements".

Al-Assiouty said that given the changing global political and economic map, "the opportunity is there for future Egyptian governments to take advantage of the situation and develop the canal to keep pace with modern times and the latest technology."

He proposed opening the door for global partnerships to develop the canal, as well as attract business investments, develop commercial areas and create international free trade zones.

Need for 'essential changes'

Waterway specialist Engineering Professor at Ain Shams University, Rifaat al-Arab, said, "The Suez Canal has the potential to become the primary source of national income for Egypt if some essential changes are made".

He said the canal cannot currently accommodate giant vessels, telling Al-Shorfa that "half the world's oil tankers and container ships cannot cross it fully loaded because its maximum depth is only 24 metres, while the drafts of newer shipping vessels are twice that when fully loaded."

"Canal revenue would increase tenfold if its draft is deepened to at least 30 metres and the canal expanded on one side through the use of so-called tributaries to accommodate another lane in order to enable two-way traffic," al-Arab added.

Recent studies by Egyptian development engineers confirm that greater expansion of the canal's infrastructure and logistical support could potentially increase revenue to more than $50 billion annually, said Ali Arafa, a consultant with the Ministry of Transport and Communications' Department of Strategic Studies.

"The canal has seen significant development over the years, which naturally increased its revenue," Arafa said, adding that 14,142 ships passed through the canal in 2000, while ten years later some 17,840 ships travelled through the Suez.

Arafa added that the canal was 164 km long at the time of its inception, and grew to 193 km by 2010, while its depth increased from 7.5 metres to 24 metres.

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    ابو حامد

    2012-8-20

    After an era that took a long time in injustice, tyranny and suffering of all Egyptians by the former Egyptian leader Mohammed Hosni Mubarak and his brutality, the time has come to achieve a dream that no one can dream about. Even he dared to dream but he could never admit it. The hearts used to fear from the tyrant oppressors and to be silent, and become subordinates for those who are more powerful and unjust. Weakness brings humiliation and shame for its owners. All the Egyptians have no powers or tricks in the injustice they face for a long time from looted wealth by its protector to enslavement of the Egyptians as if they lied under lower grade. Egypt did not live in an era worse than this era. However, now everything has been changed. The Egyptians decided the revolution on tyranny and injustice. Revolution done by unified hearts, whatever their different beliefs and religions and the scream from anger since many years that shook everything, was a free and honorable revolution led by the Egyptian revolutionists and completed by all the Egyptians targeting a better life for all the Egyptians and getting rid of the tyranny and injustice that the country witnessed in order to achieve it since many Egyptians died.

  • بلال

    2012-8-11

    The large and diverse Egyptian economy needs a concerted effort to be promoted to bring it to the highest levels. Many efforts must be concentrated for the modern Egyptian economy, until it grows and achieves the objectives of the poor Egyptian citizen, who needs an increase in his income and needs health support to be provided, as well as schools, universities and services.

  • حميد حسين

    2012-8-11

    The Egyptian economy is suffering severely after being destroyed by the corrupt regime of the ousted leader, who was stealing and wasting the public money and selling the land at the cheapest prices. The previous system caused 30 years of corruption, since its rise to power in 1982 and its corruption of the Egyptian economy, and finally the sale of the public sector, the factories and the companies at the cheapest prices. So, after the revolution and the arrival of the elected governance system, the Egyptian economy must be built and cleared of corruption. The economic system needs to be developed with the development of industry, agriculture and production, and the level of income must be raised. Egypt is filled with goods, resources, wealth and various possibilities that can promote and develop the Egyptian economy. There must be a focus on investment and on facilitating the procedures in order to attract investments to Egypt.

  • علي واعي

    2012-8-11

    There is no doubt that tourism is one of the most important sources of national income for Egypt, because of what it includes in terms of monuments, tourism and distinctive beaches, as there is no doubt that it's a way for the youth to be employed. With its privileged geographical location, Egypt is one of the most important tourist countries in the world. We have one-third of the world’s monuments, whether from the time of the pharaohs, or Islamic or Coptic, or distinctive drawings and paintings from the Babylonian, Persian or Fatimid eras, etc. After the revolution of January the 25th, Egypt has been witnessing events and situations that have changed its nature and caused economic disorder and insecurity. All of that has had a negative impact on the tourism and has resulted in fewer employment opportunities for the youth and a decreasing number of tourists from abroad. All of this has influenced our national economy, and with the current circumstances of the Islamic reign of the rule, there were certain concerns of the tourism sector workers who are wondering whether the situation will be as it was before, or whether it will change, especially in cities such as Sharm el-Sheikh and Hurghada, where there were many demonstrations against the Islamic religious doctrine. Islam has forbidden evil, filth and the drinking of alcohol. Many things are happening in various tourist resorts in Egypt. So, the fact that Egypt is an Islamic state must be respected.

  • الأستاذ مصطفى السواق

    2012-8-10

    Although imperialism and occupations are hateful and humiliating to the peoples, yet they benefited us in Egypt, because they dug the Suez Canal, which drew the world's attention to the importance of Egypt.

  • شاكر

    2012-8-10

    The Egyptian president should work on fixing many sectors that affected on the services that the Egyptians get. There are many procedures that the new Egyptian president should work on as he should fulfill his promises for the Egyptians. He promised them that he will repair many sectors that the Egyptian citizens need especially in providing many of their rights. The Egyptian citizen suffered a lot from injustice for many years. He did not have any rights and instead experienced injustice and all kinds of torture. The Egyptians elected their president to achieve their dreams and to work on spreading justice as well as every citizen should have all of his rights. There is also the issue regarding unemployment and poverty that needs much work and effort from the government to provide job opportunities for the young people to raise the future of the country. The provision of job opportunities for the young people not only benefits them but it also provides them opportunities for developing the country by raising the production level by working on increasing the level of projects which will create in Egypt many investment projects which will provide the country additional income. The government should work on repairing all sectors and work on reconstructing many organizations in order for the citizen to get his rights fairly.

  • حيدر صاحي

    2012-8-9

    The sector of tourism in Egypt is not less important than other fields such as industry and agriculture. In fact, the same thing applies to all the other countries. This sector plays an important role in the development of the economy of many nations all over the world. The economic development of the State of Egypt, in particular, depends on tourism. In fact, this sector has been an important pillar of the Egyptian economy for a long time. Tourism may be linked very heavily with the international and particularly the foreign trade. It contributes to the payment of the General Budget of Egypt. Tourism revenues are used to eliminate the deficit of the General Budget of the Egyptian State. Besides, the Egyptian tourism is viewed as an effective way to gain foreign currency and to reduce the unemployment rates. It could even eliminate joblessness because this activity depends, above all, on the massive workforce. Thus, many countries are showing more and more attention to tourism. The State of Egypt sought to allocate large amounts of capital to develop investment in this field. Over the recent decades, the Egyptian tourism has become very competitive. Indeed, many countries are trying to invest in the Egyptian tourism and contribute to the development of this nation through this field. Unfortunately, the tourism sector in Egypt is still suffering from the short sightedness of the Egyptian community. Tourism is also plagued by the ineffective policies of the competent authorities, including the so called new “reforms” which might affect this sector seriously. Tourism could be damaged by the emergence of the new political trends which succeeded to power in Egypt. Indeed, the new political forces might have strange positions and different views from the former officials who concentrated on the sectors that could increase the revenues of the State of Egypt and benefit the people, such as tourism.

  • كمال

    2012-8-9

    Egyptian economy is torn between challenges of the current time and the future. In fact, the Egyptian economy in the future will depend on the quality of life in the country as well as the operational agricultural projects. The latter play a substantial role in the promotion of the Egyptian economic system. In fact, there are some non-traditional methods to develop the economies based on agriculture. This sector is expected to play a major role in development of the national economy. The new strategy aims to produce a great proportion of the imported crops. Thus, the project would represent a quantum leap in the agricultural economy. The agriculture will develop the national economy. In this respect, the supply of millions of tons of wheat to the Ministry of Agriculture and the decision to cultivate a large part of the unexploited lands to produce oil crops are two positive measures. We are moving in the right direction for the advancement of the Egyptian economy.

  • ابو ليلى

    2012-8-8

    I pray to God to give strength to the Egyptian people and its youth, and that He keeps away the humiliation from them. We, as Egyptians, are very optimistic with the very bright and developed future that makes Egypt among the developed countries of the world.

  • عبيد جلال

    2012-8-8

    The fear is that the Egyptian people will not be patient on the issue of reform since the Egyptian people have been through decades and decades of corruption in the various aspects of life in which they are living. The lives have not been improved, only after a period of time and the next President knows and he is certain of this. The Prime Minister Allen must acknowledge them their honor and their chastity for making the money of the poor people, their own money located in the foreign bank, which was stolen money. These Ministers must work on improving the standard of living of the Egyptian citizens. It will only be for a short period of time with Allah’s will and the trust between all parties re-establishes.

  • معن يحيى

    2012-8-8

    I have seen Mr. President Dr. Mohamed Morsy swearing by Allah the Almighty that he would respect the Constitution and the law and promote the role of the Egyptian judiciary and make it independent and an implementer of its decisions. Therefore, Mr. President has to take into consideration the teachings of religion in violating this pledge and its credibility for Egyptians.

  • صنعان

    2012-8-7

    We congratulate the new Egyptian government and we wish success to it in order to server the Arab republic of Egypt and achieve the required progress in the economy, science, and housing.