Egypt has successfully completed a test run of a newly constructed 10-kilometer extension at the southern end of the Suez Canal, marking a significant milestone in the country’s ongoing efforts to enhance the waterway’s operational capacity. The new stretch, which is part of a broader expansion initiative, is expected to bolster the canal’s ability to handle increased shipping traffic, although it comes as revenue from the waterway has been severely impacted by regional instability.
The Suez Canal Authority confirmed that during the trial run, two ships navigated the newly added two-way section without incident, signaling that the expansion is operationally viable. The extension of this critical section of the canal has been in the works for several years, with Egypt prioritizing it following the high-profile grounding of the Ever Given container ship in 2021, which blocked the canal for six days, disrupting global trade. This incident accelerated Egypt’s plans to extend the southern portion of the canal and widen existing channels to prevent similar blockages in the future.
Despite these advancements, Egypt has faced a substantial decline in revenue from the Suez Canal, which remains one of the world’s most important shipping routes connecting Europe and Asia. Revenue has been especially impacted since November 2023, when Houthi militants in Yemen began targeting commercial vessels in the Red Sea, a key maritime corridor that feeds into the canal. The Houthis have justified these attacks as a show of solidarity with Palestinian militants in Gaza. The ongoing hostilities have created heightened security concerns and disrupted trade flows through the region, contributing to Egypt’s revenue loss.
In response to these challenges, Egyptian President Abdel Fattah al-Sisi revealed on Thursday that the country had lost approximately $7 billion in Suez Canal revenues in 2024. This marks a dramatic 60% decline in earnings from the vital waterway, compared to the previous year. The loss has been attributed to a combination of geopolitical tensions and the disruptions caused by the Houthi attacks, which have made shipping companies wary of the risks associated with transiting through the Red Sea.
The newly completed extension brings the total length of the Suez Canal’s two-way section to 82 kilometers, an increase from the previous 72 kilometers. The canal’s full length spans 193 kilometers. The Suez Canal Authority has emphasized that this expansion will significantly improve the waterway’s capacity, allowing for an additional 6 to 8 ships to pass through daily. It will also enhance the canal’s ability to respond to emergencies, ensuring that it remains a vital link in global trade and maritime logistics.
Looking to the future, Egyptian officials have indicated that further expansion projects are being considered beyond the current 10-kilometer extension. These plans are aimed at reinforcing the canal’s strategic importance and sustaining its role as a key artery for international shipping. As global trade continues to evolve, Egypt’s continued investment in the Suez Canal underscores the country’s determination to maintain and enhance its position in the world economy.