Suez Canal Authority trials new channel as revenues down 60% year-on-year

Admiral Ossama Rabiee, Chairman and Managing Director of the Suez Canal Authority (SCA), announced in late December the trial operation of the duplication project of Suez Canal in the Small Bitter Lakes with two vessels transiting through the new 10km ‘doubling’ channel of the waterway.

Separately, the SCA has reported that revenues from Canal transits were down over 60% for 2024 compared to the previous year, a loss of nearly $7bn, as a result of Red Sea area security concerns causing vessels to divert to the Cape of Good Hope route.

The new length of channel follows extensive dredging works and forms part of the development project of the Canal southern sector, begun after the Ever Given accident that blocked the waterway for six days in March 2021.

Adm. Rabiee stated that the traffic through the Canal witnessed the transit of the bulk carriers Fu Xing Hai and Suvari Bey through the new waterway in the duplicated area in the Small Bitter Lakes on their voyage amongst vessels of the south-bound convoy. That was in parallel with the transit of four vessels from the eastern lane.

The Authority’s Chairman also mentioned that the SCA has taken numerous measures to ensure the success of the trial operation; from the installation of buoys and necessary navigational aids in the new waterway, in addition to assigning two escort tugboats for navigational security as well as a group of the most capable SCA pilots to guide vessels in the new waterway of the duplication project. This followed their inspection of the project site and conducting a trial manoeuvre of the safe transit at the Maritime Training and Simulation Academy.

Adm. Rabjee described the development project of the southern sector of the Canal in its two parts as a major qualitative leap that will contribute to enhancing the Canal’s navigational security and reduce the impact of both water and wind currents on the transiting vessels.

Additionally, he highlighted the various navigational advantages of the duplication project of the Canal in the Small Bitter Lakes area by increasing the length of the duplication by 10 km. to be added to the New Suez Canal which has become 82 km. instead of 72 km. This will boost the Canal’s accommodation capacity by 6 to 8 additional vessels daily, and improve its ability to handle potential emergencies.

Adm. Rabiee has also issued directives on the joint coordination between the SCA’s Transit Department and the Egyptian Navy Hydrographic Department (ENHD) in order to issue the new navigational charts of the Canal that will incorporate the new duplicated part. The actual operation of the duplicated sector will start immediately upon issuing the new charts.

In addition, the SCA recently announced the arrival of the marine units of Anti-Pollution Egypt fleet in preparation for the commencement of providing the waste collection service and its safe disposal from vessels crossing the Canal at the vicinity of the northern and southern entrances during the first quarter of next year 2025.