The Suez canal For the benefit of the
The Suez canal For the benefit of the World Dr. Hossam Abdel Karim Dr. Hatem Abdelgawad
Contents • Introduction Ø Suez Canal and World Sea-borne trade Ø Development of the Suez Canal Traffic (2000 -2013) • The Future Development of The Suez Canal Ø The new Suez canal Ø The SCADP
The Suez Canal Suez canal is the first Navigational canal linking the Mediterranean Sea to the Red Sea directly. It was opened for international navigation on 17 th November 1869.
Suez Canal and World Sea-borne trade Years World Trade Suez Canal % M. Ton 2004 7125. 1 521. 0 7. 3 2005 7433. 9 571. 1 7. 7 2006 7785. 2 628. 6 8. 1 2007 8102. 8 710. 1 8. 8 2008 8317. 0 723. 0 8. 7 2009 7964. 8 559. 2 7. 0 2010 8725. 3 646. 1 7. 4 2011 9100. 6 691. 8 7. 6 2012 9467. 5 739. 9 7. 8
Development of the Suez Canal Traffic (2000 -2013) 25, 000 Numbers 20, 000 15, 000 10, 000 5, 000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 No 14, 142 13, 986 13, 447 15, 667 16, 850 18, 224 18, 664 20, 384 21, 415 17, 228 17, 993 17, 799 17, 225 16, 596 1, 000 SCNT 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1, 000 M. Ton 439 456 445 549 621 672 743 848 910 734 846 Cargo 929 Ton 928 915 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Ship Type distribution in the Canal Year 2013 Car Pass. Others Ships Ro / Ro. Carr. 4% 0% 2% 6% Container Ships 36% Tankers 22% LNG Ships 4% G. Cargo 8% Numbers Car Pass. Ships Ro / Ro Carr. Others 0% 7% 1% 1% Tankers 16% LNG Ships 8% Bulk Carr. G. 11% Cargo 2% Bulk Carr. Container Ships 17% 56% SCNT
The Future Development of The Suez Canal
Traffic System N 2 N 1 • S: The Northbound convoy has almost a free run from Port of Suez till Port-Said. • N 1: Southbound First convoy has a free run to the Bitter Lakes, and anchors in the Western Anchorages in Bitter Lakes. • N 2: Southbound Second convoy, Vessels will make fast in Ballah West Branch, and continue route after the last Northbound vessel clears Km. 61. S 1
1 - The New Suez Canal
New Suez Canal Ø "This giant project will be the creation of a new Suez Canal parallel to the current channel of a total length of 72 kilometres. Ø The project, would include 35 kilometers of dry digging and 37 of "expansion and deepening, ". Ø The "new Suez Canal“ aims to speed up traffic along the existing waterway and boost the country's economy. Ø The project, estimated to cost $US 4 billion, foresees the creation of 1 million jobs.
New Suez Canal Finance (1) Ø Egypt’s three state — the National Bank of Egypt, Banque Misr and Banque du Caire — owned banks will issue fiveyear investment certificates at 12 per cent interest to finance the new 72 -km channel, along with six underwater tunnels to link Sinai with the Port Said and Ismailia governorates. Ø The cost of the plan, is set at around $8. 4 billion or LE 60 billion. Ø The three banks will issue the certificates on behalf of the Suez Canal Authority (SCA) and transfer the value of the purchased certificates to the Central Bank, which will in turn transfer the revenues to the SCA.
New Suez Canal Finance (2) Ø Only Egyptians will have the right to buy certificates for the new development. Ø They will be offered to residents in pound-denominated certificates with values of LE 10, LE 100, and LE 1, 000, and in dollar-denominated certificates for Egyptians living abroad, at an interest rate of three per cent
Considerations upon which the idea of the project was imagined: Ø To increase the national income of hard currencies, generated by the Suez Canal; Ø To increase rate of transits, and minimize time of transit, time of stoppage, and time of waiting at anchorage areas; Ø To increase the Canal’s capacity so that it can accommodate the potential increase in ship numbers expected to take place due to the growth in the world trade volume and the development of the Suez Canal Area project; Ø To increase the Suez Canal competitiveness against other international and regional alternative water routes; Ø Boosting the morale and spirit of the Egyptian people by proving Egypt’s ability to carry out huge and gigantic projects that will enable Egypt to be back to its leading role regionally and internationally , and to be able achieve the stability and growth that every Egyptian dreams.
Expected revenues and results Ø Increasing the Suez Canal revenues by 259% by 2023 to become US$ billion 13, 226 compared with the current of US$ billion 5. 1; Ø Increasing the canal capacity to be 97 standard vessel per day by 2023 against 49 vessel in 2014; Ø The free- run of 45 vessels transiting in both directions, with less time of transit of 11 hours instead of 18 hours for southbound, and combine the second and first southbound convoys to be one southbound convoy and one northbound convoy; Ø Allowing vessels of up to 66 ft draft to transit the canal in both directions. Ø With the creation of the parallel channel that guarantees a nonstop traffic , safety shall be achieved.
2 - Suez Canal Area Development Project 16
Suez Canal Area Development Project Suez Canal Authority (The Official Umbrella for the project) Ministry of Planning Ministry of Transport Ministry of Housing, Utilities & Urban Communities Other Concerned Ministries 17
The suggested Geographical locations of the Project in coordination with the concerned ministries ﺍﻟﺤﻠﻢ The west Portsaid Port East Portsaid port. The area adjacent to Portsaid Port. The Silicon Valley East of Ismailia The industrial Zone north west of the Gulf of Suez Adabyah Port Sokhna Port Al. Areesh Port`
Suez Canal Area Development Project Objectives of the Project 1. Developing and boosting the national economy of Egypt by making use of the unique location of the Suez Canal 2. Creating new industrial and logistic centers, that depend on the added value and complementary industries. Such centers can reexport their output inside and outside Egypt through logistics distribution centers designed for that purpose, making use of the existing entities and their future development projects. 3 - Creating an economic boom in the area, and generating job opportunities for the citizens of the Canal zone, and other governorates. 4 - Increase of Suez Canal ship traffic to and from the project ports. The location can also be used as an international communication hub in the Middle East.
Suez Canal Area Development Project Roadmap Planning Preparation Implementation
Suez Canal Area Development Project Timing Planning Defining concept, and requirements of the project in coordination with the concerned ministries Done Preparation of specifications , Terms of References and determine factors of evaluation Done Invitation of international and local consultants Done Evaluation of Proposals according to unified criteria and selection of winner consortiums eligible to buy the RFP with the help of world expertise. Done Launching of the project and announcement of winner consortiums eligible to buy the RFP Done started upon issue of the Cabinet of ministries' statement on 11/9/2013 stipulating that the SCA shall be the official umbrella of the project Roadmap Preparation stage Stage
Suez Canal Area Development Project Preparation stage Stage Roadmap Timing Winner consortiums buy the RFP and prepare the master plan Done Preparation of legislations pertaining to the project in coordination with ministry of Justice and the ministerial Committee Started Receiving and evaluating of Proposals by a neutral local and international Committee and selection of winning consortium Done The winner consortium prepares the master plan of the project and presents it to the Cabinet of Ministers for approval Six Months The community debate and comment on the project's master plan in coordination with the Ministry of Information Two Months
Suez Canal Area Development Project Implementation Stage Roadmap Timing Call for an international conference to be attended by local and international enterprises , companies and investors where the approved master plan shall be presented November 2014 Forwarding of civil works pertaining to the infrastructures according to the project Master plan December 2014 Commencement of the infrastructure works At the beginning of 2015 Receiving proposals of investors and enterprises and their examination by virtue of the relevant applied laws At the beginning of 2015 Contracting the selected project in coordination with the Ministry of Investment At the beginning of 2015
Suez Canal Area Development Project Examples for the Potential Industries that can be introduced within the framework of the project • Car Assembly Plants • Petrochemical Industries • Food Processing and Canning Industries • Manufacture and Repair of Containers • Electronics • Furniture and Wood Works • Sugar and Food Stuff Industries • Bunkering • Textiles • Oil & Refining • Ship Building and Ship Repair Industries • Mining Industries • Distribution and Redistribution Logistics Centers • Crystal and Glass Manufacturing Plants • Light Metal and Iron Industries • Pharmaceutical Industries
Suez Canal Area Development Project The Suez Canal East Portsaid Port Some of the expected privileges that investment in the Project would provide (SEZ) in north west of Gulf of Suez Adabyah Port 25
Suez Canal Area Development Project North West Europe USA East Coast Europe Arabian Gulf India / South East Asia South/East Africa 1 - The distinguished location would allow investors to move both dynamically and efficiently in order to access regional and international markets. It would provide a lot of flexibility in marketing products in the Mediterranean area, Europe, and up to the east coast of the United States in the north. It would also make it possible to reach the Gulf area, the Arabian sea, Africa, South East Asia, and up to India in the south, with no deviation. Due consideration should be given to the booming economies of China, South East Asia and India, and the expected growth of their exports through the Suez Canal. 26
Suez Canal Area Development Project 2 - The availability of new investment laws and regulations that would offer investors quite a lot of protection. A tailor-made set of regulations is currently being written by a group of specialists in cooperation with the Ministry of Justice and the Ministry of Investment. The new rules and regulations will focus on avoiding the previous obstacles encountered by investors in Egypt, and will be designed in line with international standards 27
Suez Canal Area Development Project 3 - The good infrastructure that is implemented in accordance with international standards, under the supervision of specialized consulting houses and corresponding to the requirements of the relevant activities included in the master plan of the Project. This, however, will go side by side with developing the existing infrastructure in the Project area. 28
Suez Canal Area Development Project 4 - The availability of the SCA two shipyards, with five floating docks with lifting capacities of up to 55, 000 tons, tons in addition to 7 other companies affiliated to the Suez Canal Authority, involved in different activities related to shipbuilding and ship repair. The 7 companies can be further developed through investment partnership. 29
Suez Canal Area Development Project 5 - The project shall be connected to land bridges and sea routes so that multi-modal transportation can be used. 30
Suez Canal Area Development Project 6 - In spite of the latest developments in Egypt following the recent revolution on the 25 th January 2011, the Suez Canal enjoys such a high level of safety and security. The traffic of ships was never interrupted for a single day, the Suez Canal revenues are on the rise which is a source of pride for all of us. Trust was the reason the SCA had been chosen to sponsor 31 the Project, and we are so proud of that. .
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