This news comes just 11 months after the launch of this $8billion project that will include an industrial park and a free trade zone. The new canal is aimed at keeping pace with rapidly growing container traffic along the Asia – Europe route and will be inaugurated by the Egyptian President on its opening day. The Suez Canal is used by vessels travelling from China, India, Taiwan and anywhere in the far east as a ‘crossing’ saving huge chunks in transit times. The opening of a second channel in order for vessels to travel both ways along the canal will have a positive impact on all UK businesses importing from any of these locations.
Currently, the canal earns around $5billion per year in tolls, which will surely increase with the new channel opening. While tolls may increase, Transit times will be significantly reduced as ships will be able to sail un-interrupted in both directions through the canal as opposed to the ‘one way convoys’ of present time.
Egyptian government officials say they are targeting revenues of $15billion and upwards by 2023 as the canal will be supporting a logistics hub for the Middle East, North Africa and the Mediterranean.
If you have any questions about the use of the Suez canal, or want to bring goods from the far east to the UK and are wondering how this might impact you, get in touch! Call us on 0203 384 0498 or email email@example.com