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

Egyptian MP Drafts New Law to Regulate Outdoor Advertising

Nour EltiganiNovember 19, 2018

Naguib Mahfouz’s Newly Discovered Stories to be Published This December

Mirna AbdulaalNovember 19, 2018

Egypt’s Unemployment Rate Down to 10 Percent in Q3 of 2018

Egyptian StreetsNovember 16, 2018

Egypt ‘Appreciates’ and ‘Trusts’ Final Saudi Investigation into Khashoggi Killing

Egyptian StreetsNovember 16, 2018

Archaeological Mission Unearths Ancient Pregnant Woman Burial

Egyptian StreetsNovember 14, 2018

Egyptian MP to Submit Bill Omitting Religion from National IDs to Parliament

Egyptian StreetsNovember 12, 2018

British Parliament Encourages Lifting the Travel Ban Imposed on Sharm El Sheikh

Nour EltiganiNovember 11, 2018

Egyptian Film ‘Yomeddine’ Wins at Geneva Film Festival

Mirna AbdulaalNovember 10, 2018
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.