Egypt is planning to invest as much as $4 billion to build a new Suez canal next to the existing water way as it seeks to boost port and shipping infrastructure, a vital source of income for the country.
“The project will consist of a total of 72 kilometers of deepening and expansion of the existing waterway so that large ships can pass each other,” said Mohab Mamish, chairman of Suez Canal authority.
The plan includes the development of land along the canal and expansion of the water way to accommodate bigger ships. It has been ongoing for years.
The original canal linking the red and Mediterranean Sea took 10 year to complete. This multi-billion dollar project is expected to take 3 years.
According to Reuters, Egypt earns about $5 billion a year from the Suez Canal. The new canal should boost revenue to $13.5 billion by 2023.
So far 14 consortia have lodged bids for the project. Amongst them include US-based James Cubitt and partners, Mckinsey & Co, Lebanese based Dar al-Handasah and the country’s state owned Arab Contractors.
The Suez canal is the fastest shipping route between Europe and Asia.