Egypt announced on Saturday (December 28, 2024) that it had conducted a successful test of a new 10 km channel near the southern end of the Suez Canal. This development comes at a time when the revenue from the waterway has been declining due to attacks by Yemen’s Houthi militants in the Red Sea.
The Suez Canal Authority (SCA) confirmed that two ships passed through the new stretch of the canal’s two-way section without any issues during the trial run.
After the incident in 2021 where the container ship Ever Given ran aground and blocked the canal for six days, Egypt fast-tracked plans to extend the second channel in the southern part of the canal and widen the existing channel.
Despite these efforts, the revenue from the Suez Canal has plummeted since the attacks by Yemen’s Houthi militants in the Red Sea in November 2023, which they claim is in support of Palestinian militants in Gaza.
President Abdel Fattah al-Sisi of Egypt stated on Thursday (December 26, 2024) that the country has suffered a loss of around $7 billion in Suez Canal revenue in 2024 due to “regional challenges,” marking a significant decrease of more than 60% from the previous year.
The recent expansion has increased the total length of the canal’s two-way section to 82 km from 72 km, making the entire canal 193 km long, according to the SCA.
The SCA also mentioned that this expansion will enhance the canal’s capacity by accommodating an additional 6 to 8 ships daily and improving its ability to handle potential emergencies.
Earlier this year, Egypt had hinted at the possibility of another expansion project separate from the 10 km channel extension.
Published – December 30, 2024 01:29 pm IST
