Suez Canal’s dominance unchallenged by new trade routes – SCA

The Suez Canal Authority (SCA) affirmed the canal‘s vital role in global trade during a meeting Wednesday between SCA Chairman Osama Rabie and Gérard Mestrallet, French President Emmanuel Macron’s special envoy for the India-Middle East-Europe Economic Corridor (IMEC). The meeting, held at the SCA headquarters in Ismailia, focused on potential cooperation and the future of global trade routes.

Rabie reiterated the canal’s strategic position as the fastest, shortest, and safest route between East and West, emphasising its resilience even amidst recent Red Sea challenges. He highlighted Egypt’s ongoing development strategy for the canal, including modernisation, expansion, and the development of industrial and logistics zones. He stressed the canal’s continued ability to reduce transit times and costs for shipping companies, offering crucial marine and logistics services.

SCA chairman dismissed claims that the Red Sea crisis created a viable alternative to the canal, arguing that it instead underscored the canal’s importance to stable supply chains. He pointed out the increased costs, longer transit times, and environmental concerns associated with rerouting via the Cape of Good Hope. He also detailed the SCA’s proactive measures to support clients during the crisis, including new services, flexible pricing, and enhanced communication. Rabie noted positive signs of stability returning to the region, with ships resuming Suez Canal transits.

French Envoy: IMEC Corridor Will Not Rival the Suez Canal

Mestrallet clarified that the IMEC corridor is not intended to compete with the Suez Canal. He explained that IMEC, combining maritime and rail transport, operates on a different scale and model. He added that IMEC is still in planning stages, with some route options potentially involving cooperation with Egypt and integration of the Suez Canal into its logistics network. Mestrallet expressed interest in exploring collaboration opportunities with the SCA and learning more about its services.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser