Egypt faces $7B revenues loss in 2024 as Red Sea instability hits Suez Canal traffic

CAIRO – 26 December 2024: President Abdel Fattah El-Sisi met with Lieutenant General Osama Rabie, Chairman of the Suez Canal Authority (SCA), to address the significant challenges impacting the Canal’s operations and revenues in 2024. Presidential Spokesman Ambassador Mohamed El-Shennawy revealed that the Canal has experienced a dramatic revenue drop of over 60% compared to 2023, translating to nearly $7 billion in losses. This decline is attributed to ongoing instability in the Red Sea and Bab el-Mandeb, which has disrupted shipping traffic and strained the sustainability of global trade.

 

The discussions focused on modernization projects designed to enhance the Suez Canal’s capacity and maintain its role in global supply chains. These projects include the completion of the southern sector development, the expansion of the navigation route between kilometer 132 and kilometer 162 to accommodate larger vessels, and the ongoing duplication of the channel from kilometer 122 to kilometer 132. These initiatives aim to increase cargo volume and improve the efficiency of two-way vessel traffic.

 

President El-Sisi was briefed on measures taken by the SCA to mitigate challenges posed by instability in the Red Sea and Bab el-Mandeb. He also reviewed efforts to modernize Egypt’s fishing fleet using advanced technologies that meet international standards, ensuring greater efficiency and sustainability within this critical sector.

 

The President directed the SCA to prioritize the completion of the Canal development projects to provide world-class maritime services and solidify its role as a cornerstone of global trade. He also emphasized the importance of accelerating the modernization of the fishing fleet to strengthen its contribution to the national economy.

 

Egypt’s strategic focus on infrastructure development and modernization underscores its commitment to ensuring the Suez Canal’s resilience and continued significance in international commerce. Despite regional challenges, these efforts aim to secure the Canal’s pivotal role in global trade and economic stability.