Key Points
- Egypt tested a new 10-km Suez Canal channel successfully.
- Canal revenue dropped 60% in 2024 due to Red Sea attacks.
- Expanded capacity allows six to eight more ships daily.
Even though revenue from the vital waterway has drastically decreased as a result of attacks by Yemen’s Houthi terrorists on vessels in the Red Sea, Egypt stated on Saturday that it had successfully tested a new 10-kilometer tunnel close to the southern end of the Suez Canal.
New 10-km channel opens in Suez Canal’s southern section
Two ships successfully navigated the recently expanded two-way segment during a trial run, according to a statement from the Suez Canal Authority.
As stated by Reuters, Egypt expedited plans to widen the existing channel and extend the second channel in the southern portion of the waterway following the container ship Ever Given’s 2021 grounding, which shut the canal for six days.
Since November 2023, when Houthi rebels started attacking ships in the Red Sea in what they said was support for Palestinian militants in Gaza, Suez Canal revenue has drastically decreased despite the expansion efforts.
Future projects under consideration amid ongoing regional challenges
According to President Abdel Fattah al-Sisi, Egypt lost over $7 billion in revenue from the Suez Canal in 2024 as a result of regional issues, which is more than 60% less than the previous year.
The Suez Canal Authority stated that the two-way segment of the canal is now 82 kilometers long instead of 72 kilometers due to the recent development. The canal is 193 kilometers long overall.
According to the authority’s announcement, “this expansion will increase the canal’s capacity by an additional six to eight ships daily and enhance its ability to handle potential emergencies.”
Egyptian officials stated earlier this year that they were thinking about a different development project in addition to the 10-kilometer channel extension.  Â
