Egypt’s Suez Canal Authority (SCA) will increase transit tolls for ships passing through one of the world’s most vital trade routes by 15% from 1 January 2023, Admiral Osama Rabea, the canal authority’s chairman said Saturday.
The canal authority will also increase transit fees for bulk and tourist ships by 10%, Rabea said adding that the hikes are “inevitable and a necessity.” Rabea also cited soaring global inflation rates, which have raised the cost of the waterway’s operations, maintenance and maritime services.
The Suez Canal expects its revenues to increase by $700 million annually after transit fees hike by 15%, Rabea said in an interview with CNBC Arabia TV on Sunday. The canal authority plans to list between 10 to 15% of its subsidiary Canal Mooring company on the Egyptian Exchange by the end of the year.
Following the blockade of the Suez Canal by Ever Given in March 2021, Egypt’s President Abdel Fattah al-Sisi pledged investment to avoid any repetition of the crisis. The canal’s southern area is being expanded by 40 meters while its draft is being increased by 72 feet—a project that will allow more and bigger ships to navigate the waterway. The SCA is also adding more tugs to its fleet and also setting up 10 marine garages.
The Suez Canal is an essential source of foreign currency for Egypt and nearly 15% of the global trade is generated through the narrow channel, making it the fastest shipping route between Asia and Europe.
