Suez Canal records jump in revenues

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Suez Canal records jump in revenues
Egypt is banking on the Suez Canal to boost economy. Photo/Reuters

An official from Egypt’s Suez Canal has announced that revenues climbed to $470.6 million in August 2017, compared to $447.6 million same period last year representing a 5.1 per cent increase.

Head of the Suez Canal Authority Mohab Mamish attributed the positive development to increase in global trade movement passing through the Suez Canal noting a surge in quantities of goods in transit and the number of ships and cargo.

“Shipping traffic in the canal recorded 1528 ships crossing in August 2017, compared to 1462 in August 2016, an increase of 66 vessels by 4.5%, with total tonnage of 91.5 million tons, compared to 87.8 million tons in August 2016, an increase of 3.7 million tons equivalent to 4.2%,” he said.

Reports indicate that UAE-based port operator DP World will be partnering with Egypt to develop the planned economic zone near the Suez Canal.

Under the agreement, DP World will carry out the development of 95,000 square kilometres in Egypt’s north-eastern area of Ain Sokhna at the southern end of the Suez Canal.

The project also includes the construction of a 75 kilometre industrial area and a 20 kilometre residential area which will accommodate 650,000 people.The SC Zone project is expeceted to provide some 500,000 job opportunities.

DP World is one of the world’s largest port operators. It operates around 78 seaports in 40 countries around the globe.

Read:KPA says Mombasa port cargo traffic up12%

The Canal is the fastest shipping route between Europe and Asia and one of the Egyptian government’s main sources of foreign currency.

In 2015, Egypt opened a major expansion of the Canal, which deepens the main waterway and provides ships with a 35km (22 mile) channel parallel to it.

The country hopes that the Suez Canal will help revive the economy that was badly affected by the unrest that followed the Arab springs.

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