New sections and bypasses in the 72-kilometer stretch of the waterway will reduce waiting time and transit times, according to Suez Canal authorities.
An expansion of the Suez Canal that will allow two-way traffic in some sections officially opened today and is being praised by large shipping companies.
Egyptian President Abdel Fattah Sisi officially opened what the government has been calling the “New Suez Canal” in a ceremony on Thursday.
The project does not run the entire length of the waterway, but adds a second 35-kilometer section, in addition to deepening and widening of the Great Bitter Lakes bypasses and Ballah bypass, with a total length of 37 km, so that the total length of the project is 72 km.
Many press reports put the cost of the project at $8.2 billion today, more than double the initial $4 billion estimate.
“The extension will enable larger vessels to transit, benefitting not only the shipping companies, but also our partners and world trade as a whole,” says Claus V. Hemmingsen, a representative of the Maersk Group the chief executive officer of Maersk Drilling, who was attending the opening with Soren Toft, chief operating officer of Maersk Line. He said the extension will also reduce transit times for vessels.
The Suez Canal Authority said the expansion will “minimize the waiting time for vessels to become three hours at most instead of 8-11 hours,” and will cut down on trip cost and make the Suez Canal more attractive.
French ocean carrier CMA CGM said the expansion will enable a “more rapid and fluid sailing.”
The project involved the removal of 250 million cubic meters of material through dry excavation and 58.8 million cubic meters of dredge material by 45 dredgers. Construction was completed in just one year.
The Suez Canal Authority said the canal expansion “goes side by side with the Suez Canal Area Development Project,” which is aimed at expanding trade along the waterway and will include development of 76,000 square kilometers around the canal into an international industrial and logistics hub to attract more ships and generate additional income. The development project could cost as much as $15 billion, and is expected to have a positive impact on the Egyptian economy by boosting hard currency earnings, providing job opportunities and creating new urban communities.
CMA CGM said two of its ships, the CMA CGM Laperouse and the CMA CGM Titan were positioned at the head of the vessel procession during the project’s inauguration on Thursday.
CMA CGM Group said it has 11 of its main shipping lines transiting the Suez Canal.
Suez Canal expansion opens officially today
