Egypt Successfully Tests New 10 km. Suez Canal Channel Amid Revenue Decline

Egypt has announced the successful testing of a new 10 km stretch at the southern end of the Suez Canal, as part of an ongoing effort to expand and modernize the waterway. The test run, which took place on Saturday, involved two ships passing through the newly constructed two-way section without incident, demonstrating the improved capacity of the vital shipping route.

The expansion comes in the wake of the 2021 grounding of the Ever Given, which caused a six-day blockage of the Suez Canal and highlighted the need for upgrades to avoid future disruptions. As part of these efforts, Egypt has focused on widening and extending the southern channel of the canal, with the goal of facilitating smoother passage for ships and enhancing its resilience against unforeseen events.

However, despite these advancements, the Suez Canal's revenue has significantly dropped in 2024. The Suez Canal Authority reported a sharp decline in earnings, citing attacks by Houthi militants on vessels in the Red Sea since November 2023. These attacks, attributed to Houthi forces in solidarity with Hamas, have disrupted shipping and contributed to a revenue loss of about $7 billion, marking a more than 60% drop compared to 2023.

The latest expansion increases the two-way section of the canal to 82 km, up from the previous 72 km. The move is expected to boost the canal's daily capacity by 6 to 8 additional ships and provide enhanced flexibility in case of emergencies, according to the Suez Canal Authority.