Leadership and focus can make a difference. This is a good technical news story out of Egypt. The project was originally expected to take 3 years and be ready by 2017. Instead, it will be essentially completed in just one years time and dedicated in August this year.
The New Suez Canal (actually an expansion project) is more than 80% complete according to multiple sources. The project is intended to increase the capacity of the channel from the current 49 ships a day to 97 ships a day. The market target of almost 100 daily ships (half in each direction) will be likely reached by year 2023
The result will be a POSSIBLE 1 DAY SHORTER journey on a 21 to 24 day containership passage between Asia & Northern Europe
Waiting time for entering the canal will be reduced to 3 hours from the current 8 to 11 hours. The actual canal transit times could drop from 18 hours to 11 hours.
COMMERCIAL REVENUE IMPACT
The investment could increase canal revenue from the $5.3-billion generated from the payment of tolls by 16,744 vessels in the 2013/14 financial year to $13.2-billion by year 2023.
The Suez Canal route competes with railways trying to offer price competitive and time competitive blends of container transport between Asia and Europe. The water route via Suez has ~ a 99% share. Now the Suez sailing times will improve. The maritime route has a huge price advantage in terms of the price per container moved. versus the railway prices.