Egypt is carrying out a feasibility study on the expansion of the Suez Canal in order to reduce transit times and avoid potential blockages of this important artery, through which 12% of the world’s maritime trade passes, according to the Bloomberg agency, which cites. Agerpres.

The project aims to transform those segments where navigation is currently carried out in one lane, 50 kilometers from the northern part of the canal, respectively 30 kilometers in the southern part, into areas where navigation can be carried out in two lanes, he noted. Suez Canal Authority (SCA) President Osama Rabi at an event organized on Sunday.

The proposals follow plans first revealed in 2021, when the Ever Given shipwreck completely blocked traffic through the Suez Canal for a week. Almost a decade ago, Egypt completed a massive $8 billion expansion program for the Suez Canal, reducing wait times and attracting even more ships.

Initial studies have been completed and handed over to Egyptian President Abdel-Fattah al-Sisi, who will receive the final proposals when they are ready for approval, Rabi said. It is not yet clear how much the expansion will cost, nor what the potential timeline for completion of the project is.

Trade through the Suez Canal has suffered from attacks by Houthi rebels

Two companies, ACE Moharram-Bakhoum and Dar Al-Handasah, are currently conducting a feasibility study for this project and analyzing possible partners. The expansion will ensure “the transit of the Suez Canal in complete safety,” Rabi said.

Revenues from the Suez Canal, which reached a new record of $9.4 billion in the fiscal year from July 2022 to June 2023, have so far been affected by attacks by Houthi rebels on ships in the Red Sea.

The Suez Canal is a valuable source of foreign currency for Egypt, but UN figures in late January showed that Houthi attacks had caused a 42% drop in trade passing through the canal. Transportation of wheat by sea is among the most affected.

In response to these attacks, the major shipping companies decided to reroute their ships to a longer and more expensive route that would bypass the Cape of Good Hope. But this route adds 10-15 days to the journey between Asia and Europe.