El-Mossawer: Suez Canal reports record revenues

General Ahmed Fadel, Chairman of the Egypt's Suez Canal Authority, attributes the slow traffic through this man-made canal to the Iraq War. According to the General, the decline in oil production in the Gulf area had also had a negative impact on activities in the Suez Canal.

The SCA chairman denies that Sumid, the big petroleum company, has lured away many of the canal's traditional customers. "We (the SCA and Sumid Company) have wisely managed to avoid a price war.

We both realize that neither of us would stand to benefit from such a war," he says. "As a result of sensible planning, Suez Canal revenues have increased by about $ 48 million."

Fadel told el-Mossawer magazine last week that the SCA are busy making certain changes to cope with the new challenges and global demands. "One of the things we are doing is to rely more on our own experience so we can eventually dispense with foreign expertise in this field," he stressed. So far, this self-reliance policy has led to savings estimated at a colossal $ 600 million. In the old days, this money would have been paid to foreign companies in return for their assistance.

Asked whether the Suez Canal Authority would increase transit fees to offset the decline in revenues, Fadel explained that the whole matter needs to be thoroughly considered, adding that he supported the decision made before he took office not to reduce the transit fees for shipping using this huge man-made canal, that was officially opened in 1869.

"This was a very wise decision," General Fadel explained. "We continue to resist the temptation to increase the transit fees, despite the many unfavourable international developments in the last couple of years, that have been a major setback to global trade in seaborne traffic."

"The Suez Canal has survived the crises and chaos that have swept across the world over the past few years," he continued, adding the SCA have given their approval to a bold, ambitious scheme to increase its customers.

"One of the things we're going to do is to offer tempting discounts to any ship or tanker that is passing through the canal for the first time."

In a statement he made last week, Fadel disclosed that the SCA reported record revenues of $ 2.68 billion for the fiscal year 2002-03. He denied that most of the money comes from warships that pass through the waterway that divides mainland Egypt from Sinai. "It's all baseless rumors," he said firmly.

"More than 14,600 ships and tankers used the canal (in the fiscal year 2002-03). Warships accounted for only 14 percent of the traffic."

The senior SCA official also played down fears about the proposal to build another canal to link Suez and the Dead Sea.

"The purpose of the canal will be to generate power. It won't be used for transit or transportation," he stressed.