Egypt’s Suez Canal expects its annual revenue to increase by $700 million following an increase in transit fees in 2023, the canal authority’s chairman told CNBC Arabia on Sunday.
Osama Rabie also said the authority is planning to list shares for 10 per cent to 15 per cent of its subsidiary Canal Mooring and Lights Company on the Egyptian stock exchange by the end of this year. It is one of eight of the authority's subsidiaries.
On Saturday, Mr Rabie said that the Suez Canal Authority will increase rates for most vessels crossing the waterway by 15 per cent, and by 10 per cent for dry bulk ships and cruise ships, starting on January 1.
The increases are due to the rise in freight rates, energy prices and time charter rates per day, the authority said.
The hike was “inevitable and a necessity” in light of global inflation that reached more than 8 per cent, “which translates into increased operational costs and the cost of the navigational services provided in the canal”, Mr Rabie said in a statement on Saturday.
Average global inflation is forecast at 8.7 per cent this year, compared with 4.7 per cent last year, according to Euromonitor International.
In Egypt, urban consumer inflation rose to 14.6 per cent year-on-year in August, as it continues to struggle from the economic repercussions of the Russia-Ukraine war and soaring commodity prices.
About 10 per cent of global trade passes through the canal, a major source of foreign currency to the Arab world’s most populous country.
The transit tolls were determined based on a number of factors, including the high freight rates of container ships, compared to those recorded before the Covid-19 pandemic.
The authority expects navigational lines to achieve high operational profits in 2023 in light of the continued global supply chain disruptions, congestion in ports worldwide and “the fact that shipping lines have secured long-term shipping contracts at very high rates”, Mr Rabie said.
The increase in crude oil prices to more than $90 per barrel and average liquefied natural gas prices to above $30 per million thermal units have also led to a rise in the average prices of ship bunkers passing through the canal.
Daily charter rates for crude oil tankers increased on average by 88 per cent and LNG carriers by 11 per cent, compared to last year.
The Suez Canal remains the most efficient and least costly route compared to alternative routes, Mr Rabie said. It cuts the journey time between Asia and Europe by 15 days on average.
Annual revenue reached a record high of $6.3 billion in 2021 on the back of record tonnage and numbers of vessels transiting the canal.
Earlier this year, the authority raised transit fees and removed certain discounts, citing a rise in global trade and the need to expand the waterway.
Last month alone, the canal earned a revenue of nearly $745m with more than 2,120 ships passing through.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Company%20profile
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The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
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Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
The%20Beekeeper
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COMPANY%20PROFILE
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It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
RESULTS
1.45pm: Maiden Dh75,000 1,200m
Winner: Lady Parma, Richard Mullen (jockey), Satish Seemar (trainer).
2.15pm: Maiden Dh75,000 1,200m
Winner: Tabernas, Connor Beasley, Ahmed bin Harmash.
2.45pm: Handicap Dh95,000 1,200m
Winner: Night Castle, Connor Beasley, Satish Seemar.
3.15pm: Handicap Dh120,000 1,400m
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
3.45pm: Handicap Dh80,000 1,400m
Winner: Mutawakked, Szczepan Mazur, Musabah Al Muhairi.
4.15pm: Handicap Dh90,000 1,800m
Winner: Tafaakhor, Sandro Paiva, Ali Rashid Al Raihe.
4.45pm: Handicap Dh80,000 1,950m
Winner: Cranesbill, Fabrice Veron, Erwan Charpy.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
THE LOWDOWN
Romeo Akbar Walter
Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher
Read more about the coronavirus
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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