Development of The New Suez Canal

The idea of the "new suez canal" project was initiated by president sadat around the end of
1970 and this project was fully implemented during the leadership of president Sisi, starting
on august 5 2014. the project "the new suez canal" includes building a new shipping line next
to / parallel to the current suez canal line with a track length of about 72 kilometers, which is
made from kilometers 50 to kilometers 122 on the current suez canal line. the following is a
satellite image of the realization of the "the new suez canal" project :

Figure 1 the development of new suez canal on 2014 to 2016

In the picture above shows the development of this project for nine months, the picture on
the left was taken around August 2014, the time of the "the new suez canal" project, and the
left picture is the result of project development where new lines are added to the right, with
the addition of this lane it will improve the operation of the two-way shipping vessel that will
sail from the opposite direction. The new suez canal project just like the old suez canal, it
doesn’t have system lock cause The Mediterranean and Red seas, however, have similar
water levels.
Digging a new canal is a must for increasing the accommodation capacity of the Suez Canal,
and the main purpose of this project is increase revenue from the use of suez canal for the
government and cut ship transit times from 18 hours to 11 hours, so that the waiting time can
be reduced and the total cost of shipping operations can also be minimized, and more clearly,
the following is the goal of developing the "the new suez canal" project :
1. Increasing the canal’s numerical capacity from 49 vessels per day in 2014 up to 97 vessels
per day by 2023.
2. Increasing the canal’s revenues from 5.3$ billion in 2014 up to 13.2$ billion by 2023.
3.Creating around 1 million job opportunities for residents of the Canal area, Sinai and
neighboring governorates, and creating new urban societies.
the "new suez canal" project will provide an overview of an optimized and effective logistics
system that will increase contributions to many factors such as military, financial, political,
trade and other economic factors. but in its development, there are several challenges, such
as from the operational aspect of shipping, namely piracy from Somali pirates and the
limitations of vessels that can pass through this route, namely the Suezmax vessel which has
gross tonnage between 120,000 and 200,000 tonnes, a maximum draft of 20.1 m, and width
not exceeding 50 m.
allen, j. (2019). The New Suez Canal. [online] Earthobservatory.nasa.gov. Available at:
https://earthobservatory.nasa.gov/images/87948/the-new-suez-canal [Accessed 12 Mar. 2019].

BACCELLI, O., BUONFANTI, A., FERRARA, O. and ZUCCHETTI, R. (2015). The new Suez Canal:
economic impact on Mediterranean maritime trade. [ebook] Available at: http://www.srm-
maritimeconomy.com [Accessed 12 Mar. 2019].

kenawy, e. (2016). The Economic Impacts of the New Suez Canal. egypt: Panorama, pp.282-288.

Banyak fokus yang melatarbelakangi dikembangkannya terusan suez ini, disamping dari faktor efisiensi
logistik tentunya, karena terusan suez sendiri secara geografis sangat strategis dan memiliki banyak
peluang, di antaranya fokus pada urbanisasi, tourism, industri, perdagangan, economy, dan logistik.
Dari sektor logistik dan operasional pelayaran, pengembangan new suez canal diharapkan dapat
mengatasi masalah kapal-kapal yang bermuatan besar tidak bisa melewati suez canal yang sekarang
serta dengan pengembangan area dari suez canal dapat memberikan adjunct port service seperti ship
maintenance and repair workshops, storage facilities and transit trade, etc

Dengan pengembangan terusan suez ini akan memberikan dampak yang baik dalam berbagai sektor
pengembangan kesejahteraan masyarakat mesir, dampak tersebut diantaranya adalah:

1) Impact on national income, dengan program pengembangan ini maka diharapkan akan
meningkatkan pendapatan dari suez canal dari 0,3% menjadi 259% atau dari 5 billion dollar menjadi
13.226 billion dollar
2) Impact on world trade movement, dengan penambahan dan perluasan canal maka akan membuat
fungsionalitas canal bertambah seperti doubling the canal’s assimilation of transit capacity through
the increase in the average number of daily transits. It will also lessen the Suez Canal’s transit time
from 16 to 11 hours. two-way traffic also will lessen the 18 waiting hours to about three hours only
dan hal ini akan meningkatkan performansi logistik dengan sangat efisien
3) Impact on job opportunities, The project is expected to provide about one million job opportunities.
The project will contribute to increasing the demand for engineers in all fields, particularly in the
phases of planning, construction, and overseeing implementation.
4) Impact of foreign direct investment, dengan dampak yang dihasilkan dari project ini terutama dari
sector layanan logistik dan pelayaran such as storage, cargo, unloading, supplies, maintenance,
repair, transit trade and other logistics services membuat para investor asing berdatangan untuk
menanamkan modal mereka
5) Impact on the exchange rate and currency value, sejalan dengan banyaknya investasi yang datang
maka hal ini akan memperkuat local currency value
6) Impacts on urban development and attracting population, dengan proyek pengembangan suez canal
ini akan membuat pemerataan dari sebaran penduduk