Success Amidst Challenges: Egypt's Suez Canal Expansion

Egypt has tested a new 10 km section near the Suez Canal's southern end, aiming to increase the canal's capacity. Despite this, revenue from the canal has significantly decreased due to attacks by Yemen's Houthi militants on vessels in the Red Sea, resulting in a $7 billion loss in 2024.

Egypt announced over the weekend that it had successfully trialed a new 10 km section at the southern end of the Suez Canal, a vital trade route that has recently experienced a dramatic drop in revenue. The Suez Canal Authority confirmed the new extension could potentially enhance the canal's daily capacity by 6 to 8 ships.

The financial setback comes after Yemen's Houthi militants started targeting vessels in the Red Sea in late 2023, citing support for Palestinian militants in Gaza. Egypt's President, Abdel Fattah al-Sisi, highlighted the severe financial implications, noting a $7 billion revenue loss in 2024, which equates to more than a 60% decline from the prior year.

The newly expanded section adds 10 km to the canal's two-way traffic capability, increasing its total two-way length to 82 km. With the overall canal stretching 193 km, this move is part of Egypt's ongoing effort to boost trade efficiency and manage future maritime challenges.

(With inputs from agencies.)