Egypt plans to dig $4 billion new Suez Canal Transport and Related Services

Egypt plans to build a new Suez Canal next to the existing one which is 145-year old waterway in a multi-billion dollar project to boost trade activities.

The 72Km passage will extend the fastest shipping route between Europe and Asia and facilitate ships to pass each other as well as cut down on waiting times for vessels from around 11 hours to three.

Suez Canal project is among various mega projects planned to bring in life into the nation, which involves modernizing the canal ports and industrial zones.

Egypt's president Abdel-Fatteh el-Sisi officially inaugurated the military-led scheme, in a ceremony broadcast on state television from the canal city of Ismailia, set to cost $4 billion.

The digging of the new canal will permit ships to transit in both directions for just under half of the canal’s 160Km stretch. Despite of the initial time frame for completion was five years, the project is likely to be done much earlier, says, el-Sisi.

According to the local Egyptian media, among the bidders for the Suez project, was a group consisting state-run Arab Contractors and consultancy firm James Cubitt and Partners. Management consulting firm McKinsey & Co are also included. However, entire control will come from the nation’s military.

The existing Suez Canal generates around $5 billion of revenues per year, reflecting as an important source of hard currency for Egypt which has endured a decline in tourism and foreign investment since its 2011 outbreak.

The new canal will improve annual revenues to $13.5 billion by 2023, according to reports from the Suez Canal Authority.