(MENAFN) The Suez Canal Authority (SCA) has reported a 40 percent increase in revenue during the first quarter of 2023, compared to the same period in the previous year. The authority earned USD2.08 billion in revenue, indicating a significant rise in navigation traffic in the canal. The SCA revealed that 5,534 ships passed through the canal in the first quarter of 2023, a 19 percent increase from 4,660 ships during the same period in 2022. The canal’s net tonnage also rose by 16 percent in the same period, totaling 320 million tons, up from 275 million tons the previous year.
Speaking at the flying of the Egyptian flag on the locomotive ‘Amin Zaid’ event, Osama Rabie, head of the SCA, acknowledged that strategic planning had a significant impact in mitigating the negative repercussions of numerous global economic challenges and even attaining an unparalleled increase in canal navigation rates. Rabie added that the Suez Canal's revenues in March were new and unprecedented in terms of daily transit figures. In March, the Suez Canal had the highest daily transit rate in its history, with 107 ships passing through from both directions without waiting, totaling 6.3 million tons of net tonnage.
In early January, the SCA enforced its decision about ship crossing fees, which is to increase transit rates for all types of ships transiting the canal by 15 percent during the year 2023, while transit fees for both dry bulk boats and cruise ships increased by 10 percent. The decision was made to help pad Egypt’s siphoned foreign reserves.
The SCA's announcement of a 40 percent increase in revenue in the first quarter of 2023 is a positive sign for the country's economy, indicating an increase in navigation traffic and net tonnage. The Suez Canal is a crucial route for international trade, as it connects the Mediterranean and Red Seas, providing a faster and cheaper alternative to the traditional route around the southern tip of Africa. The rise in revenue is a result of the SCA's strategic planning and efforts to mitigate the negative impacts of global economic challenges.
The SCA's decision to increase transit rates for all types of ships transiting the canal by 15 percent during the year 2023, while transit fees for both dry bulk boats and cruise ships increased by 10 percent, was made to boost the country's foreign reserves. The decision has paid off, as evidenced by the rise in revenue. The SCA's success in managing the canal and increasing revenue is a significant achievement, as it contributes to the country's economic growth and stability. The SCA's efforts to attract more ships to the canal through strategic planning and policy decisions are expected to continue in the coming years, as Egypt seeks to maintain its position as a vital hub for international trade.
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