The situation in the Red Sea is now more stable and hence revenues in Egypt's Suez Canal are increasing. Osama Rabie, Chairman of the Egyptian Suez Canal Authority and CEO of Moller-Maersk Group discussed the situation in the Red Sea and Bab al-Mandab (the Gate of Grief or the Gate of Tears, is a strait between Yemen on the Arabian Peninsula and Djibouti and Eritrea in the Horn of Africa) and the extent of its impact on the group's navigation plans during the next phase. Rabie stressed the depth of the relations between the Moller-Maersk Group and the Suez Canal Authority, which is a major partner in achieving common goals towards contributing to serving the global trade movement and strengthening global supply chains, expressing his hope that the coming period will result in more constructive bilateral cooperation at all level

For his part, CEO of the Maersk Group Vincent Clerc expressed his appreciation for the efforts made by the Egyptian government and the concerned parties to work on restoring stability to the Red Sea region again. Rabie stressed the group's keenness to follow up on developments in the Red Sea and Bab al-Mandab, expressing positive impressions regarding current developments with the beginning of the return of stability to the region, and that the coming weeks will witness further calm, which will positively reflect on the region and freedom of navigation.

Recent official data indicates that the Suez Canal Authority achieved actual net revenues of EGP5.673 billion (USD0.112 billion) during the first half of the current fiscal year, an increase of 32 percent over the revenues of the same period of the previous fiscal year 2023-2024, which amounted to EGP4.3 billion (USD0.085 billion). The Suez Canal also achieved an 8 percent increase over the expectations of the budget for the fiscal year 2024-2025, which was estimated at about EGP5.2 billion (US 0.103 billion)

Port revenues also represented about 77 percent of total revenues, and revenues from other activities witnessed a significant increase as a percentage of contribution to the authority's total revenues to reach 23 percent compared to an average share that did not exceed eight percent during the previous five years.

During the fourth meeting of the Board of Directors of the General Authority for the Suez Canal Economic Zone, Chairman of the Authority Walid Gamal El-Din referred to reviewing the status of the Authority's promotional efforts until the middle of the current fiscal year 2024-2025. The Authority succeeded in attracting 66 new projects in various sectors with total investments of USD1.755 billion, providing about 1,600 additional job opportunities.

These projects varied between 54 new projects that the Authority's promotional efforts succeeded in attracting, and 12 other projects that are investment expansions for existing projects within the Authority, which represents a development of the successful partnership between the Authority and the owners of these projects in the private sector.

Relative stability in the Red Sea

The Chairman of the Suez Canal Authority discussed with representatives of 23 entities from major shipping lines and agencies and heads of shipping chambers in Suez, Port Said and Alexandria the impact of the beginning of the return of relative stability in the Red Sea and Bab al-Mandab on the plans and schedules of navigation in the Suez Canal during the coming period.

Rabie stressed the Authority's keenness to achieve direct and effective communication with all its clients to consult and exchange views on the latest developments in the Red Sea and Bab al-Mandab region, appreciating the important role of shipping agencies as a key link and partners in achieving common interests.

He explained that the current situation in the Red Sea region is witnessing many positive indicators towards the beginning of the return of stability to the region, which makes the opportunity available to take executive measures to amend navigation schedules in preparation       for the gradual return of maritime navigation to its normal course.​

Photo: Revenues from Egypt's Suez Canal are up 32 percent in six months (by Adobe).