[#SNP_SPOTLIGHT] EGYPT RAISES TRANSIT FEES FOR CARGO SHIPS PASSING THROUGH THE SUEZ CANAL
07/03/2022
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Egypt's Suez Canal Authority (SCA) has decided to increase transit fees for cargo ships passing through the Suez Canal by 5-10% from 1 March.
According to the decision of SCA, transit fees for ships carrying cars and other vehicles, ships carrying liquefied natural gas (LNG), general cargo ships, multi-purpose cargo ships, heavy frigates, cargo ships and special floating units moving through the Suez Canal in both directions will increase by 7%.
SCA applies a 10% increase to liquefied petroleum gas (LPG) tankers, chemical tankers and other bulk liquid carriers. Meanwhile, a 5% increase is applied to ships carrying petroleum products, ships carrying crude oil, and ships waiting for dry bulk cargo.
The Suez Canal is an important waterway connecting the Mediterranean Sea and the Red Sea, and is the shortest maritime route connecting Asia and Europe. The waterway accounts for about 10% of the world's seaborne freight volume, and is one of Egypt's key sources of foreign exchange.
In 2021, despite the impact of the COVID-19 pandemic and the 6-day stranded incident of the Ever Given ship, the Suez Canal still achieved a record revenue of about $6.3 billion. Sales of the Suez Channel in February 2022 increased 15.1% to $ 545.5 million.
The SCA statement said the agency made its latest decision based on the significant growth in global trade and improved operational efficiency and safety of navigation of the Suez Canal.
Egypt has started implementing the project to expand and upgrade this waterway from June 2021, with a total cost of 191 million USD. The project to expand and modernize the Suez Canal consists of two phases, said Osama Rabie, President of the Suez Canal Authority. In phase I, Egypt will extend 10km for two-way traffic from 75km to 85km. In phase II, the 30km section south of the Suez Canal will be extended 40m to the east bank of the channel and deepened by nearly 2m.
According to Mr. Rabie, after the project is completed in mid-2023, the travel time of boats on the Suez Canal will be shortened from about 13-15 hours now to 11 hours.
(SNP)
SCA applies a 10% increase to liquefied petroleum gas (LPG) tankers, chemical tankers and other bulk liquid carriers. Meanwhile, a 5% increase is applied to ships carrying petroleum products, ships carrying crude oil, and ships waiting for dry bulk cargo.
The Suez Canal is an important waterway connecting the Mediterranean Sea and the Red Sea, and is the shortest maritime route connecting Asia and Europe. The waterway accounts for about 10% of the world's seaborne freight volume, and is one of Egypt's key sources of foreign exchange.
In 2021, despite the impact of the COVID-19 pandemic and the 6-day stranded incident of the Ever Given ship, the Suez Canal still achieved a record revenue of about $6.3 billion. Sales of the Suez Channel in February 2022 increased 15.1% to $ 545.5 million.
The SCA statement said the agency made its latest decision based on the significant growth in global trade and improved operational efficiency and safety of navigation of the Suez Canal.
Egypt has started implementing the project to expand and upgrade this waterway from June 2021, with a total cost of 191 million USD. The project to expand and modernize the Suez Canal consists of two phases, said Osama Rabie, President of the Suez Canal Authority. In phase I, Egypt will extend 10km for two-way traffic from 75km to 85km. In phase II, the 30km section south of the Suez Canal will be extended 40m to the east bank of the channel and deepened by nearly 2m.
According to Mr. Rabie, after the project is completed in mid-2023, the travel time of boats on the Suez Canal will be shortened from about 13-15 hours now to 11 hours.
(SNP)
