On Wednesday, the Chairman of the Suez Canal Authority (SCA), Osama Rabie, announced that the Egyptian Suez Canal’s revenues saw an unprecedented surge, amassing a total of $9.4 billion in the current financial year 2022/2023, compared to $7 billion in the previous year.
During a press conference on Wednesday, the SC’s Head attributed the Suez Canal’s revenue increase to factors such as the Ukrainian-Russian war and ongoing development projects by the SCA, among other factors.
Rabie’s comments at the press conference highlight the Suez Canal’s crucial role in facilitating global trade. The Suez Canal is a key maritime passageway connecting the Mediterranean and Red Seas, providing the shortest sea link between Asia and Europe.
Today’s announcement, underscored by the exceptional revenue growth figures, reaffirms the Canal’s strategic importance to global trade. These financial milestones also point to the effective operational and fiscal management of the Suez Canal Authority under Rabie’s leadership.
Rabie explained that the pricing for canal transit is based on factors such as fuel prices, ship volume, and provided services.
“We are currently reviewing our transit tariffs and will announce in October whether we will increase or maintain prices,” Rabie stated.
Any pricing changes will take effect in January 2024, according to Rabie.
In January 2023, the SCA raised transit fees by 15 percent for all vessels and 10 percent for dry bulk and cruise ships.
In recent years, the Suez Canal Authority has implemented multiple development and expansion projects to improve the Canal’s capacity and efficiency. These projects aim to attract more ships, increase the Canal’s revenue, and solidify its position as a key hub in the global maritime network. These efforts seem to have paid off, as indicated by the recent announcements of record revenue growth.