Egypt Tests New Expansion of Suez Canal

Egypt has successfully tested a new 10-kilometre extension to the Suez Canal, aimed at enhancing navigational safety and increasing capacity amid a significant revenue decline due to regional conflicts. Two vessels passed through the newly developed section, which will add 6 to 8 ships daily to the canal's capacity, following the completion of dredging works. This initiative comes in response to challenges faced by ships navigating the canal, including incidents like the 2021 grounding of the Ever Given. Revenue from the canal has reportedly dropped by over 60% this year, amounting to a loss of approximately $7 billion, primarily due to attacks by Yemen's Houthi rebels on shipping in the Red Sea. Despite the revenue slump, the Suez Canal Authority continues to advance development projects to bolster the canal's significance in global trade. The expansion reinforces Egypt's strategic position in maritime navigation as stability in the Red Sea region is anticipated to improve.