Egypt announced on Saturday the successful trial of a new 10 km stretch of the Suez Canal’s southern two-way section. During the trial, two ships passed through the new section without issue, marking a significant development in the canal’s expansion. This project is part of Egypt’s broader efforts to improve canal capacity following the 2021 grounding of the Ever Given, which disrupted traffic for six days. The expansion extends the two-way section of the canal to 82 km from 72 km, with plans for further developments to increase daily ship traffic by 6-8 additional vessels.
However, Egypt’s revenue from the Suez Canal has significantly decreased, with a 60% drop in 2024 compared to 2023. This decline is largely attributed to attacks on vessels by Yemen’s Houthi militants in the Red Sea, which began in November 2023. These attacks, framed by the Houthis as solidarity with Palestinian militants in Gaza, have disrupted maritime traffic in the region. Egyptian President Abdel Fattah al-Sisi stated that the country lost approximately $7 billion in revenue from the canal in 2024 due to these “regional challenges.”
The Suez Canal remains a critical trade route, offering the shortest passage between Europe and Asia, but its future stability is currently under pressure from regional instability. Despite the downturn, Egypt continues to push forward with infrastructure projects to secure and enhance the canal’s strategic importance.
