The Suez Canal Authority announced at a press conference yesterday that Egypt’s canal profits have jumped from LE342.2 million in May 2009 to LE395 million in the same period this year . The profit increase is a sign that Egypt is recovering from the global financial crisis.
The authority’s spokesperson, Mohamed Abdel Wahab, said that May profits were the highest since November. In an exclusive statement to Al-Masry Al-Youm, he attributed the profit increase to improvements in international trade.
Abdel Wahab predicted an increase in the number of vessels passing through the canal. He also warned that the Euro crisis and the drop in commercial activities between Europe and Asia may affect maritime activity, but at the same time assured that the crisis’ impact on canal revenues would be limited.
Abdel Wahab disclosed a plan to deepen the canal’s western stream in order to make it equal to the eastern one, 66 meters, within two years. The new plan will allow the passage of large vessels as heavy as 240,000 tons.
The Ministry of Economic Development has predicted a rise in the canal’s returns in the upcoming fiscal year, thanks to efforts at global economic recovery as well as the authority’s expansion projects. The expected profit increase is estimated at 5 percent.
Canal revenues dropped last year due to the economic crisis and piracy on the Red Sea. At the time, the canal authority refused to reduce passage fees, arguing that the problem was not with the fees but rather with the reduced shipping movement.
Translated from the Arabic Edition.
