One year on, are 'new' Suez Canal revenues sinking?
Although the Suez Canal has not generated the expected revenues after expansion, future development plans in the canal zone could yield great economic benefits for the Egyptian economy.
CAIRO — Aug. 6 marked the one-year anniversary of the inauguration of the new Suez Canal. While the expansion project was heavily praised in the Egyptian press, serious questions remain about its value a year on.
On Aug. 6, 2015, Egyptian President Abdel Fattah al-Sisi officially inaugurated the new Suez Canal. The announcement was made to a packed audience that included French President Francois Hollande, Russian Prime Minister Dmitry Medvedev and a number of Arab rulers.
The cost of the project, on which construction began in August 2014, has now exceeded $8 billion. The project consists of digging a waterway 35 kilometers (22 miles) long in parallel to part of the original canal, which runs for 190 kilometers (118 miles).
In August 2014, Vice Adm. Mohab Mamish, head of the Suez Canal committee, said in comments to the press that "digging the new Suez Canal will yield increased canal revenues to the tune of 259% by 2023, meaning $13.226 billion, compared with the present revenue of $5.3 billion."
