News

Egypt’s Suez Canal Earnings Fall for Third Month in a Row

Egypt’s Suez Canal Earnings Fall for Third Month in a Row

Photo: Reuters
Photo: Reuters

For the third consecutive month, revenues from Egypt’s Suez Canal declined, reaching USD 401.4 million, Egyptian state media reports, citing new data released by the Suez Canal Authority.

The new figures showed that the revenues in January and December were USD 411.8 million and USD 429 million, respectively, meaning that the last three months have seen revenues fall by a total of USD 27.6 million.

The drop in earnings comes against the backdrop of claims that ships are shifting their routes from the Suez Canal to the Cape of Good Hope at the southern tip of Africa due to the global fall in oil prices.

Chairman and Managing Director of the Suez Canal Authority Mohab Mamish has rejected those allegations, declaring, “The Suez Canal is the main route for world trade, and no other alternative can take its place in the field of maritime transport.”

However, compared to February 2015, Canal revenues in February 2016 in fact increased by 5.08 percent.

 The much-anticipated expansion of the Suez Canal promised by President Abdel Fattah Al-Sisi in 2014, was inaugurated a year later in a lavish ceremony attended by leaders from around the world and high-profile figures from Egyptian society.

While the Egyptian leader proclaimed that the new Canal would more than double annual revenues by 2023, experts have been more pessimistic, pointing to a decline in global trade, which would lead to declining demand for shipping through the Canal. To achieve the 2023 goal, shipping would have to increase by 9 percent per year, with no decline in traffic.

 Analysts have noted that the building of the Suez Cana is as much an economic development project as it is a way for President Sisi to muster political support. The Suez Canal has, ever since President Gamal Abdel Nasser nationalized it in 1956, been a source of pride for Egyptians and a testament to Egypt’s independence from foreign control. One analyst said of the new Suez Canal project that “Sisi is taking a page directly out of Nasser’s playbook.”

Sisi Meets With Egyptian Intellectuals Amid Rising Concerns Over Media Freedom
'Anti-Torture Detainee' Mahmoud Mohamed Released on Bail After Two Years in Pretrial Detention

Subscribe to our newsletter


News

More in News

Seven Arrested for Raising Rainbow Flag During Mashrou’ Leila Concert

Kari MegeedSeptember 26, 2017

How Oil Wealth and Terrorism Can Lead to Kurdistan’s Secession

Mirna Khaled AbdulaalSeptember 25, 2017

World’s Heaviest Woman, Egyptian National Eman Abdel Aty Dies at 37

Egyptian StreetsSeptember 25, 2017

Mashrou Leila Banned from Performing in Egypt Over ‘Rainbow Flag’: Syndicate

Egyptian StreetsSeptember 25, 2017

Egypt Wins the 2017 Macau Squash Open in China

Maydaa Abo El NadarSeptember 25, 2017

Egyptian Authorities Order the Closure of Al-Balad Bookstore

Engy AdhamSeptember 24, 2017

State Institutions to be Moved to the New Administrative Capital By the End of 2018: PM

Egyptian StreetsSeptember 24, 2017

The International Finance Corporation to Invest $150 Million in Agriculture in Egypt

Egyptian StreetsSeptember 24, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 Egyptian Streets. All Rights Reserved.