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Revenues from Egypt's Suez Canal have dropped
this year by 7.2 percent to US$4.72 billion as a
result of the global financial meltdown and
piracy, the canal authority chief said Sunday.
Adm. Ahmed Fadel told reporters Sunday that the
53rd anniversary of the nationalization of the
canal comes at a time of "new challenges," as
the number of ships crossing the 120-mile
waterway is declining.
The government-run canal connects the
Mediterranean and Red seas and is one of Egypt's
main foreign currency earners.
Fadel said the financial crisis and "slight"
concerns about piracy off the Horn of Africa
have affected revenues, the number of ships
going through and the size of shipments.
Some 19,354 ships passed through the canal this
year, compared to 21,080 last year, or an 8.2
percent drops.
More ships have been opting for the longer,
costlier route around South Africa.
The net tonnage going through the canal has also
declined by 8.9 percent compared to last year as
maritime trade is downsized, Fadel said.
Egypt's late President Gamal Abdel Nasser
nationalized the majority French-owned company
that ran the canal in 1956 as part of his reform
programs.
The move was widely considered a blow to Britain
and France, the old colonial powers, and sparked
a war with the two countries and Israel.
The Canal earnings have since remained one of
the top revenue earners for the government.
Government officials have projected a 22 percent
decline in government revenues in 2010, in large
part due to declines in Suez Canal revenue and
international tourism.
Canal earnings last year stood at $5.1 billion.
This year's earnings remain higher than in 2007
and 2006.
Fadel said the Canal authority is working to
increase the permissible draught for ships to 66
feet by this year's end.
Currently, the canal only allows ships with a
draught of 58 feet, including the largest class
of carriers. - AP
Source: The Star BUSINESS |
