Monday 20 October 2014

Egypt to Deepen Suez Canal to Revive Economy

In an attempt to revive its battered economy, Egypt has decided to go ahead with the project to dredge the Suez Canal and signed contracts with six international firms for the purpose.

The companies are National Marine Dredging Company of the United Arab Emirates; Royal Boskalis Westminster and Van Oord, both based in the Netherlands; Jan de Nul Group and Deme Group, both of Belgium; and US-based Great Lakes Dredge and Dock Company.

The companies would begin working in the third week in October and the new canal is scheduled to be completed by August 2015.

The new canal is to be built alongside the existing 145-year-old waterway which is the fastest shipping route between Europe and Asia. Income from the existing canal provides a vital source of hard currency for a country that has suffered a slump in tourism and foreign investment since the 2011 uprising.


Egypt hopes the enlarged canals will more than double revenue from the waterway by 2023 to $13.5 billion from $5 billion. It also plans to develop 76 000 km² in the area into an international industrial and logistics hub to generate income. 

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