Egypt Completes Suez Canal Expansion to Boost Capacity and Revenue

Egypt recently conducted a successful test of a new 10 km channel near the southern end of the Suez Canal. The trial run saw two ships passing through the new stretch of the canal’s two-way section without any incidents, according to the Suez Canal Authority. This development comes in the wake of a significant drop in revenue from the waterway, attributed to attacks by Yemen’s Houthi militants on vessels in the Red Sea.

The expansion of the canal was expedited following the 2021 grounding of the container ship Ever Given, which blocked the waterway for six days. The recent test run marks an extension of the canal’s two-way section to 82 km from the previous 72 km, with the total length of the canal now standing at 193 km. The expansion is expected to increase the canal’s capacity by 6 to 8 additional ships daily and enhance its ability to handle emergencies.

Egyptian President Abdel Fattah al-Sisi acknowledged the challenges posed by regional conflicts, stating that the country lost approximately $7 billion in Suez Canal revenue in 2024, representing a more than 60% drop from the previous year. Despite the revenue decline, plans for further expansion projects beyond the 10 km channel extension are being considered. The Suez Canal Authority emphasized that the latest expansion will bolster the canal’s capabilities and ensure smoother operations in the future.

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