Back to the complete issue
Wednesday, 7 April 2021

We could be seeing expansion work done on the Suez Canal

The Suez Canal Authority (SCA) is considering an expansion of the Southern section of the waterway where MV Ever Given became lodged late last month, SCA chairman Osama Rabie told Reuters. Acquiring new cranes that could vertically offload cargo from up to 52 metres is also on the authority’s radar, to help mitigate any future incidents in the canal. “Our procedures are sound, we are just aiming to improve the service” Rabie said.

About face? The construction work could move forward despite Rabie’s indication last week that the undertaking would not be economically feasible.

The Ever Given should be out of here within two to three days, Rabie said, following the conclusion of the investigation. The ship is currently anchored in the Great Bitter Lake, and has handed over data from its recorders to the investigation team.

Egypt wants to reach a financial settlement for the blockage out of court and has been in negotiations with the owners of the vessel “for nearly a week,” Rabie told the Associated Press. “Bringing the case before a court would be more harmful to the firm than settling,” he noted. The SCA head said last week that Egypt could look to claim some USD 1 bn in damages from ins. companies, which includes foregone revenues of around USD 15 mn for each day the ship blocked the canal, as well as damages to the waterway from dredging the bank’s embankment to free the ship.

A minor incident in the waterway put eyes on the canal again yesterday after an oil tanker briefly experienced engine failure during its passing, causing a 10 minute delay to traffic, according to an SCA statement. The 62k tonne vessel was escorted by tugboats Tim Hope and Mosaed 3 through the canal and has since addressed the technical malfunction.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.