Egypt banking on Suez Canal expansions for prosperous future

Egypt is banking on the expansion project of the Suez Canal to bring extra traffic and boost government revenues over the next decade.

The expanded section of the canal was formally opened in early August by Egypt’s president, carrying with it the hopes of reviving the nation’s economic fortunes.

Egypt named the project “The New Suez Canal.” The project is the largest expansion the canal has ever seen in a single project, spanning 72 kilometers.

“The project was very important at this stage. There were other competitive projects that would have dragged traffic from the Suez Canal if the expansions were not made,” said economic analyst Ahmed Zaghloul, citing the planned expansion of the Panama Canal as an example.

With the remarkable completion of the project in just one year, the Suez Canal can now accommodate some of the largest ships in the world. The Suez Canal authority says that the canal will now allow ships with a depth of 19.5 meters.

Meanwhile, Zaghloul believes the extension will provide a boost to Egypt’s industry and other sectors.

“The New Suez Canal is a very big project and it will benefit three provinces – Suez, Port Said and Ismalia. There will be industrial zones and other logistics projects,” Zaghloul said.

The project cost around eight billion U.S. dollars to complete. Egypt expects the canal’s annual revenue to increase from five billion U.S. dollars currently to 13 billion U.S. dollars by 2023.

CNA –News Service – CCTV