Friday 2 October 2020
Last update on Friday, October 2, 2020 At 10:50 AM
In fiscal year 2020-2021, Egypt will spend 1 billion dollars on Suez Canal modernization and extension projects. In particular, the measure will allow the updating of Canal Authority (SCA) equipment, with a view to increasing the capacity of this infrastructure.
Egyptian government plans to invest 16.9 billion Egyptian pounds (1 billion dollars), in fiscal year 2020-2021, for the modernization and extension of Suez Canal. This was announced last week by Hala al-Said, Egypt’s Minister of Planning and Economic Development.
Works will concern in particular the completion of the construction of four tunnels under the canal ; two in the governorate of Port-Said and two in that of Ismailia. The investment project will also serve to improve the equipment of the Suez Canal Authority (SCA), the main institution managing the area, in order to make it safer.
5.73 billions of revenues
With this new plan, Egyptian authorities hope to increase the capacity of the Suez Canal, which is one of the flagships of the country’s economy. Breakthrough between 1859 and 1869, nationalized in 1956, this major artery of international maritime trade is considered one of the most important links in global supply chains, due to its important geographical location as a shipping route connecting the Mediterranean Sea (via Port Said) to the Red Sea (via Suez).
According to Minister al-Said, the channel’s revenues reached about 5.73 billions dollars in fiscal 2018/2019, making the area one of Egypt’s main sources of foreign currency. Nonetheless, the slowdown in global trade linked to the coronavirus pandemic could lower this year’s earnings.
Source : Ecofin Agency.
