Introduction
In 1859 the French private company Compagnie Universelle du Canal Maritime de Suez was responsible for the construction of the Suez Canal in Egypt. This channel connected the Read Sea with the Mediterranean Sea, opening a shorter trade route between Asia and Europe. Almost 100 years later, in 1956 the Egyptian President nationalized the canal, resulting in the Suez Crisis with military actions by Israel, France and the United Kingdom. However, the channel remained in the hands of Egypt. In 1962 Egypt fulfilled its last payment to the Compagnie de Suez.
On Saturday, 5th of August 2014, the head of the Suez Canal Authority, Lieutenant General Mohab Mermish announced the expansion of the Suez Canal during a press conference, in presence …show more content…
It contributes around US$5bn in the Egyptian economy each year. The enlargement of the Suez Canal could bring in US$13.5bn by 20231 according to the government. By this, the Egyptian president El-Sisi wants to stimulate the economy which has declined due to the political instability and declining tourism. Therefore, the new Suez Canal project is a high priority for Egypt, as in case for the High Dam project in the 20th century2. The High Dam project provided a central water reservoir, agricultural land and electric energy for the local residents. As in case for the Suez Canal, it is a connection between Europe and Asia, which provides an economical interesting trade route. Without this passage, trade ships had to make a detour around the African …show more content…
The constructions plans of the Panama Canal will end in 2016. This could be one of the reasons to finish the Suez Canal project in just one year. Without the new Suez Canal, Egypt would certainly lose market share to the Panama Canal. But there are other possible threats, for example the road between Eilat and Ashdod. Ships arrive at Eilat, containers are transported over land by trains or trucks and other ships pick them up in Ashdod. There are also plans to construct a railroad in Russia, to connect Europe and Asia. However there is a very little chance that these plans will
In 1859 the French private company Compagnie Universelle du Canal Maritime de Suez was responsible for the construction of the Suez Canal in Egypt. This channel connected the Read Sea with the Mediterranean Sea, opening a shorter trade route between Asia and Europe. Almost 100 years later, in 1956 the Egyptian President nationalized the canal, resulting in the Suez Crisis with military actions by Israel, France and the United Kingdom. However, the channel remained in the hands of Egypt. In 1962 Egypt fulfilled its last payment to the Compagnie de Suez.
On Saturday, 5th of August 2014, the head of the Suez Canal Authority, Lieutenant General Mohab Mermish announced the expansion of the Suez Canal during a press conference, in presence …show more content…
It contributes around US$5bn in the Egyptian economy each year. The enlargement of the Suez Canal could bring in US$13.5bn by 20231 according to the government. By this, the Egyptian president El-Sisi wants to stimulate the economy which has declined due to the political instability and declining tourism. Therefore, the new Suez Canal project is a high priority for Egypt, as in case for the High Dam project in the 20th century2. The High Dam project provided a central water reservoir, agricultural land and electric energy for the local residents. As in case for the Suez Canal, it is a connection between Europe and Asia, which provides an economical interesting trade route. Without this passage, trade ships had to make a detour around the African …show more content…
The constructions plans of the Panama Canal will end in 2016. This could be one of the reasons to finish the Suez Canal project in just one year. Without the new Suez Canal, Egypt would certainly lose market share to the Panama Canal. But there are other possible threats, for example the road between Eilat and Ashdod. Ships arrive at Eilat, containers are transported over land by trains or trucks and other ships pick them up in Ashdod. There are also plans to construct a railroad in Russia, to connect Europe and Asia. However there is a very little chance that these plans will