April 2022 \ World News \ International News
Suez Canal – Maritime Opportunities for India

Researched and written by Isha Jaiswal & Dr PS Jaiswal

The Suez Canal is a 193.3 km long, 225 meters broad man-made artery that as per New Zealand Foreign Affairs and Trade articulations, carries about 12% of Global Trade or 30% of Global Container Traffic, whilst Hellenic Shipping News pegs this figure at 13% respectively. [1, 2, 3 and 4]. It lies towards the northeast of Egypt and connects the Mediterranean Sea near Port Said in the north to the Red sea with Port Suez in the south. [5]. It serves as a global aquatic economic artery, as, its one of the most important and heavily used waterways benefitting trade, transportation, commerce with Egypt collecting tolls paid by ships to pass through the canal. This serves as a source of income, especially for the Egyptian Government. Its strategic geographical location has enabled immense contributions to the Egyptian revenues through robust trade schemes and facilitations.

Accordingly, Egypt needs to visualize, launch and implement strategies and policies to keep upgrading the incentives offered for maritime trade and maintaining the operational capability of the canal to be relevant for the times to come.

Since its inception, the Suez Canal has replaced the Cape of Good Hope trade route by providing a shorter route, that positively impacted the transit time and distance. The Suez Canal attracted considerable maritime traffic from the Cape of Good Hope. It enables the European countries to connect and trade with the Asian nations easily due to the reduced time and space vectors. The money saved by avoiding the Cape of Good Hope route on the fuel and other operating costs, can now be utilized for paying higher alternate route tariffs, other levies or facilities, or simply generate more profits for the shipping lines.

The Suez Canal was completed in the year 1869 and has since undergone multifarious improvements in terms of dimensions, berthing, disaster recovery, logistic support, financial aspects and of course, now it is being also affected by piracy from the Somalian waters. [6].

Tags: Egypt

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