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Home » Egypt Tests New Extension for Suez Canal

Egypt Tests New Extension for Suez Canal

LARGE CONTAINER SHIPS TRAVEL ON THE SUEZ CANAL WITH CONTAINERS IN THE FOREGROUND OF THE PHOTO.

Photo: iStock / IgorSPb

December 31, 2024
SupplyChainBrain

A test of a new 10 kilometer channel that extends the stretch of the Suez Canal allowing two-way ship traffic has been deemed successful, as Egypt looks to expand the canal three years after the Ever Given container ship blocked the canal for nearly a week.

Two ships moved through the new extension near the southern end of the canal in a trial run on December 28, Reuters reports. The passageway extends the length of the Suez Canal's two-way section from 72 to 82 kilometers (44.7-50.95 miles), out of a total of 193.30km. 

The project was in part prompted by the disastrous grounding of the Ever Given in 2021, which blocked the waterway for six days, and impacted billions of dollars worth of trade before the ship was finally re-floated and towed out. 

According to the Suez Canal Authority, the expansion will boost the channel's capacity by as many as eight ships a day, and "enhance its ability to handle potential emergencies." 

This comes at a troubled time for the Suez Canal, with Houthi rebels based out of Yemen continuing to choke off traffic through a crucial gulf that feeds the waterway. Houthis started attacking vessels in the Red Sea in October 2023, at first targeting ships with ties to Israel, although many of its attacks since then have been largely indiscriminate. Over the last year, Houthis have been linked to more than 130 incidents in the Red Sea and the Gulf of Aden in total. That's led to ocean carriers avoiding the Suez Canal altogether, instead opting for a longer journey around South Africa's Cape of Good Hope. 

In a December 26 briefing, Egypt President Abdel Fattah al-Sisi estimated that his country had seen a 60% year-over-year drop in revenue from the canal in 2024, totaling roughly $7 billion in losses. 

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