CAIRO: A recent surge in global shipping has generated record high revenues for the Suez Canal waterway, reaching LE 29.4 billion ($5.05 billion) in the 2010/11 fiscal year, according to official reports.
Suez Canal Authority chief Ahmed Fadel said Tuesday that canal revenues rose 11.3 percent over 2009/10 figures, due to an upturn in world trade, state-run daily Al-Ahram reported.
Fadel said 18,050 vessels transited the canal in the last year, up 3.1 percent from the previous year, according to official reports.
“The ships coming through the canal have been on the rise significantly,” Mohamed Helmy Nosier, manager of affiliated companies at Suez Canal Authority (SCA), told Daily News Egypt.
Results in the first half of 2011 showed a marked rise compared to the same period in 2010, with revenues climbing 12.7 percent to $2.5 billion, state-run papers cited Fadel as saying.
The number of vessels passing through the canal increased by 1.7 percent in the first half of 2011.
“We expect more ships in the coming period over the next three months,” Nosier added.
In June, revenue for the waterway rose 16 percent year-on-year to $445 million, up 2 percent from a month earlier, according to a government portal.
In June of 2010, revenues were at $383.7 million. While in May, they reached $436.6 million.
Along with remittances — which declined to $2.8 billion in the third quarter of fiscal year 2010/11 compared to $3.1 billion in the previous quarter — and tourism, Suez Canal revenues, which constitute about 3 percent of Egypt’s GDP, are the country’s top source for foreign currency reserves.
Due to the recent political turmoil that hit the country after the January 25 Revolution toppled former president Hosni Mubarak, foreign currency reserves have seen a slump.
From $36.6 billion in December 2010 to $26.6 billion in June 2011, Egypt’s foreign currency reserves have been declining, according to Mike Millar, head of research at Naeem Holding.
Last month, fears circulated among traders and ship owners when many Suez Canal workers threatened to go on strike and shut the waterway if their demands for better working conditions were not met.
In fact, Suez Canal Shipyards Co., one of the most vital revenue generators for the canal lost LE 30 million, about $5 million due to ongoing strikes by workers that were demanding better working conditions, a 40 percent increase in salaries, and better life and insurance plans.
However, despite constant demonstrations by workers, labor unions, and families of victims who were killed during the revolution, Ahmed Al-Manakhly, director of SC said that the canal was moving regularly.
An average of about 50 ships cross the canal daily, which makes up for about eight percent of global transportation and generates around $1.2 billion annually for Egypt.
