The Suez Canal Authority will release updated navigational charts after completing a significant 10-kilometer expansion of the waterway, aimed at improving capacity and operational efficiency. Osama Rabie, Chairman of the Suez Canal Authority, confirmed that the operational launch of the new dual-section expansion in the Little Bitter Lake area will begin in the first quarter of 2025, following the finalization of the new charts.
The expansion, which increases the length of the Suez Canal’s newly developed section from 72 kilometers to 82 kilometers, is expected to significantly enhance the canal’s capacity. With the addition of 6 to 8 extra vessels per day, the expansion will not only increase daily traffic but also improve the canal’s ability to handle emergencies more effectively.
The Suez Canal Authority had already conducted a successful trial operation of the expansion in December 2024, underscoring the project’s readiness for full-scale implementation.
However, the expansion comes amid a backdrop of mounting challenges for Egypt’s most critical trade route. The Suez Canal has seen a sharp decline in revenue due to regional instability, particularly from the escalating tensions in the Red Sea. In 2024, the canal suffered a staggering $7 billion loss in revenue, a 60% drop compared to the previous year. This decline is attributed to a series of attacks by Houthi rebels on commercial vessels passing through the Red Sea, forcing shipping companies to reroute vessels around the longer Cape of Good Hope route, significantly impacting global trade.
The Suez Canal, once a key economic lifeline, is grappling with these disruptions. Latest financial reports show that annual revenues for fiscal year 2023-2024 dropped by nearly 25%, from $9.4 billion in 2022-2023 to $7.2 billion. As global trade faces increasing uncertainties, the new expansion is seen as a crucial step in securing the future competitiveness of the Suez Canal.
With the additional 10 kilometers of dual-channel, the Suez Canal aims to bolster its strategic position in global shipping, ensuring it remains a key player in the world’s most important maritime trade route.
