Suez Canal Future

8/10/2019 Suez Canal Future

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The Future of the

Suez Canal

Shifting International Trade Routes

Tampa, January 15-16, 2009

Ezzat M. El Sadek, Ph.D.

Board Member

Suez Canal Authority


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The Suez Canal links the Mediterranean Sea to

the Red Sea.

Suez Canal

It was opened for international navigation on

17 th November 1869.


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Map

ofThe Suez Canal


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The Characteristics of the Suez Canal

( 1869 2008 )

Description 1869 2008

Overall Length km 164 190.25

Doubled Parts km 0 78

Depth m 7.5 22.5 - 24

Cross Sectional Area m2 304 5000 - 5200

Max. Draft feet 22 62

Max. tonnage 103 tons 5 220


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125.0m

345.0m

280.0m

125.0m

345m.345 m

280m


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Double parts of the Canal

Port Said by-bass Ballah by-bass

Deversoir & Bitter Lakes by-passesTemsah by-pass

The Length 27.5 KMIts Length 5 KM

Its Length 36.5 KM Its Length 9 KM

21

Acc. In 1955Acc. In 1980

3

Acc. In 1980

4

Acc. In 1980


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The Present Canal 2009

100 % of Container fleet 98 % of the bulk fleet

100 % of other types60 % of the tanker fleet


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Emma Maersk

( First Transit 22/9/2006 S.B. )

397.71Length (m)

56.4Beam (m)

16.02Draught (m)

158 200DWT

158 030SCNT


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DUHAIL - LNG Tanker

First Transit: 1st April 2008

305.57Length (m)

50Beam (m)

40Draught (ft)

121667SCNT


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The Main Advantages of the Suez Canal

Longest Canal in the world without locks.Longest Canal in the world without locks.

Navigation goes day and night.Navigation goes day and night.

Liable to be widened and deepened whenLiable to be widened and deepened when

required to cope with the expansion in shiprequired to cope with the expansion in shipsizes of the world fleet .sizes of the world fleet .

The VTMS system is securing the highestThe VTMS system is securing the higheststandards of safety to the vessels transitingstandards of safety to the vessels transiting

the Canal.the Canal.


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Suez Canal Traffic


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Traffic System

The navigation is run in a convoy system .

Ships transit the Canal in three convoys daily :

1- From Port Said at 0000 hrs going south.

2- From Port Tawfiqe at 0600 hrs going north.

3- From Port Said at 0630 hrs going south.

Permissible speed for loaded tankers 13 Km/hr.

Permissible speed for other ships 14 Km/hr.

Average transit time from 12 to 16 hrs

N2N2

S1S1

N1N1


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Development of the Suez Canal Traffic 1998Development of the Suez Canal Traffic 1998--20082008

(Numbers)(Numbers)

21415

18664

20384

13472

13490

14142

13956 13447

15667

16850

18224

0

5000

10000

15000

20000

25000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Numberofship


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Ship Type distribution in the Canal(2008)Ship Type distribution in the Canal(2008)

( Numbers)

Bulk Carr.

19%

Others

9%Car Carr.7%

G. Cargo

10%

Tankers

18%

Cont. Ships37%


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Daily average number of transitsDaily average number of transits

against Suez Canal capacityagainst Suez Canal capacity

58.55754.2

48.4

41.2

38.7

49.851.1

55.8

0

10

2030

40

5060

70

80

90

100

1980 1985 1990 1995 2000 2005 2006 2007 2008

Year

Numberofships

Daily Average

Capacity 88 shipsCapacity 98 ships

Capacity 78 ships under the current transit system

fully effective use of the By-Passesand through the change of the convoy

system.


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Development of Suez Canal Traffic 1998Development of Suez Canal Traffic 1998--20082008

(SCNT)(SCNT)

444.8

742.7

910.1

549.4

848.2

671.8621.2

456.1439

385

386.1

0

200

400

600

800

1000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Scnt(M.Ton)


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Ship Type distribution in the Canal(2008)Ship Type distribution in the Canal(2008)

( SCNT)

Others4%Container

53%

Car Carr.9%

Bulk Carr.

14%

LNG

4%

Tankers

16%

S C l T ffi D l t 2007&2008S C l T ffi D l t 2007&2008


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Suez Canal Traffic Development 2007&2008Suez Canal Traffic Development 2007&2008

1000

1300

1600

1900

2200

2007 2008

2007 1629 1511 1667 1657 1679 1597 1761 1755 1761 1787 1765 1815

2008 1690 1676 1699 1712 1840 1819 1854 1993 1872 1930 1770 1560

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Nov DEC

Number of ships

S C l T ffi D l t 2007&2008S C l T ffi D l t 2007&2008


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Suez Canal Traffic Development 2007&2008Suez Canal Traffic Development 2007&2008

S N T

50

55

60

65

70

7580

85

90

M

.T

o

n

2007 2008

2007 67.4 63.4 66.8 66.8 71.0 67.4 74.4 72.7 73.0 75.2 72.6 77.4

2008 73.8 72.8 72.6 73.1 76.7 76.3 79.4 84.1 79.6 81.2 73.6 66.9

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC


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The Importance of the Suez Canal

The geographical position of the Suez CanalThe geographical position of the Suez Canal

makes it the shortest route between East & westmakes it the shortest route between East & west

as compared with the Cape of Good Hope.as compared with the Cape of Good Hope.

The Canal route achieves a saving in distanceThe Canal route achieves a saving in distance

between the ports East & West the Canal, thebetween the ports East & West the Canal, the

matter that is translated into saving in time, fuelmatter that is translated into saving in time, fuel

consumption and ship operating costs .consumption and ship operating costs .

About 10% of the world seaborne trade passesAbout 10% of the world seaborne trade passes

through the Suez Canal.through the Suez Canal.


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Saving in Distance Via SuezSaving in Distance Via Suez

Canal and Alternative RoutesCanal and Alternative Routes

A - Ca p e o f Go d H o p e B - Pa n a m a Ca n a l

A S i i di t hi d b th


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A- Saving in distance achieved by the

Canal compared To Cape of God Hope

Nautical miles Saving

From ToSC Cape

Savingby

miles

%saving

Constanza 4144 12094 7950 66%

Lavera 4684 10783 6099 57%

Rotterdam 6436 11169 4733 42%

Ras

Tanura

New orleans9645 12299 2654 22%

Piraeus 1320 11207 9887 88%Jeddah

Rotterdam 6337 10743 4406 41%

Tokyo Rotterdam 11192 14507 3315 23%

Singapore Rotterdam 8288 11755 3647 29%


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Via the Canal6436 n.m

RotterdamRotterdam

Ras TanuraRas Tanura

Via the Cape

11169 n.m

Saving in distance via the Canal

From Ras Tanura to Rotterdam (4733 n.m: 42%)

From New YorkT (Mil )

Suez Panama Difference


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Colombo

Singapore

Hong KongShenzhenShenzhen

Pearl River DeltaPearl River Delta

HalifaxNew York

NorfolkSavannah

To (Mile)Suez Panama e e ce

Hong Kong 11632 11301 -331

Laem Chabang 11002 12645 1643

Singapore 10204 12537 2333

Colombo 8600 14073 5473

Diff.Diff.PanamaPanamaSuezSuez

47647611616116161114011140From Halifax - Hong Kong (mile)

Laem Chabang

PRD is one of the two fastest

growing manufacturing region

in China

B Suez/Panama


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Development of the Suez Canal

1- Navigational Channel

2- Equipment and Machinery

3-Safety of the Traffic and NavigationalSupport

4-Development of Pricing Policies


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1-Development of

the Navigational

Channel

Development of the Navigational Channel


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Development of the Navigational Channel

A . From the year 1869 till the present

Description Unit 1869 1956 1962 1981 1994 1996 2001 2008

Overall Length km 164 175 175 187.5 190.25 190.25 190.25 190.25

Doubled Parts km - 29 29 78 78 78 78 78

Depth m 7.5 14 15.5 19.5 20.5 21 22.5 22.5-24

Cross

Sectional Aream2 304 1200 1800 3600 3800 4200 4800

5000-

5200

Max. Draft feet 22 35 38 53 56 58 62 62

Max. tonnage 1000tons

5 30 80 150 175 190 220 220


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B. On going Development

The work is going on for the stage of 66 ft draft.

It is planned to be completed by the end of

this year .

Upon completed, the canal depth will be 24 m

and the cross sectional area will be 5200 m2

allowing loaded tankers up to 240000 tonsD.W.T. to transit the canal and will be able to

accommodate :

- 99 % of the Bulk carriers.

- 60 % of the Tanker fleet.

- 100 % of all other types of vessels.


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C. Future Development

Another stage for widening and deepening the canal is

expected to be carried out depending upon the feasibility

studies. This stage will be for increasing the draft up to72 ft.

By the end of this stage, the canal depth will be 27m andthe cross sectional area will be 6750 m2 allowing loaded

tankers up to 350000 tons D.W.T to transit the canal.

Increase the lengths of double parts.


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2 - Development of

Equipment

and Machinery


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- Cutter suction dredger 31050 hp

- Year of built 1996 - Max. dredging depth 35 m

MASHOURMASHOUR


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Trailing Suction Hopper dredger- Hopper capacity 10000 m3 -Total installed power 25032 hp

- Year of built 2004 - Max. dredging depth 35 m

Mecca


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One of the biggest tugs of 160 bollard pull tons


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`

Floating Crane Enkaz 500 tons


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Floating dock of 55000 tons


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3-Safety of traffic

and navigationalsupport


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Targets achieved by the System :Targets achieved by the System :


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Targets achieved by the System :Targets achieved by the System :

Increasing the standards of safety of vesselsIncreasing the standards of safety of vessels

transiting the canal through a radar net worktransiting the canal through a radar net workcovering all the canal.covering all the canal.

Radar surveillance covering an area of 30 Km atRadar surveillance covering an area of 30 Km at

portport--Said and PortSaid and Port TawfikTawfik , and that gives an, and that gives anautomatic announcement of arrival time of allautomatic announcement of arrival time of allvessels getting into the waiting area.vessels getting into the waiting area.

Monitoring all the vessels transiting the canal toMonitoring all the vessels transiting the canal to

calculate average speed, separation distance,calculate average speed, separation distance,passing time at signal stations and to plot the realpassing time at signal stations and to plot the realtransit pattern.transit pattern.

Participating in environment protection byParticipating in environment protection bydecreasing the number of accidents in the Canal anddecreasing the number of accidents in the Canal anddealing with them in the proper way in case theydealing with them in the proper way in case theyoccur.occur.

B - The Maritime Training & Simulation Centre


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B The Maritime Training & Simulation Centre

M i C t ' Obj tiM i C t ' Obj ti


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Main Center's ObjectivesMain Center's Objectives

Training of S.C.A Pilots on the mainTraining of S.C.A Pilots on the mainmaneuvers for transiting the canal safely.maneuvers for transiting the canal safely.

Training the pilots in order to be able toTraining the pilots in order to be able tocontrol the vessel on different weathercontrol the vessel on different weatherconditions.conditions.

Analyzing any accident in the canal.Analyzing any accident in the canal. Studying the expected behavior of specialStudying the expected behavior of special

types of ships before their first transit.types of ships before their first transit.

Updating the technical information of theUpdating the technical information of thepilots to the latest technology in the field ofpilots to the latest technology in the field of

pilotagepilotage..

C S C l R h C t


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C. Suez Canal Research Center

Suez Canal Authority Research Center isone of the Egyptian institutions specialized

in conducting research and technicalstudies in the fields of design and

development of navigation canals, port and

harbor engineering, shore protections , and

marine structures .


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The research center consists of five Sections :

1. Canal and safety of navigation research section

2. Harbor and coastal research section .

3. Soil mechanics sections.

4. Testing of materials and quality assurancesection .

5. Maintenance of equipment and instrument

section .


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Canal Research laboratory

Canal current measurements Harbours Research Lab.


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4-Development of

Pricing Policies


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The regular dues can attract most of ourThe regular dues can attract most of ourd f h ff ht d f th t ff th


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customers ,and for the rest we offer othercustomers ,and for the rest we offer other

policies as :policies as :

11--Establishing an elastic tollEstablishing an elastic toll s system to encourage alls system to encourage all

the potential trade to pass through the Canal:the potential trade to pass through the Canal:

-- LongLong-- haul vesselshaul vessels (Case by Case)(Case by Case)

-- VLCCsVLCCs in ballast condition (20% reduction forin ballast condition (20% reduction forships fromships from CaribianCaribian and US Gulf to AG) .and US Gulf to AG) .

-- Environmentally friendly vessels (2% reductionEnvironmentally friendly vessels (2% reductionfor Double Hull)for Double Hull)

-- LNG carriers (35% , plus Other reductionsLNG carriers (35% , plus Other reductionsoffered to certain quantity of gas transportedoffered to certain quantity of gas transportedvia the Canal)via the Canal)


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22--Maintaining full complementary and coordinatingMaintaining full complementary and coordinatingpolicy with SUMED Pipeline.policy with SUMED Pipeline.

33--Time saving service for vessels arriving after theTime saving service for vessels arriving after thetime limit against a surcharge of 3%,5% or 10%time limit against a surcharge of 3%,5% or 10%

subject to vesselsubject to vessels time of arrival.s time of arrival.

Suez Canal Container Traffic


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Suez Canal Container Traffic

Importance of Suez CanalImportance of Suez Canal


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Importance of Suez CanalImportance of Suez Canal1000 TEU (LOADED)1000 TEU (LOADED)

YearYearWorldWorld

TradeTrade**%%

TradeTrade

viavia

SuezSuez* ***%%

% of% of

SuezSuez

toto

worldworld

20002000 66000 _ 11998 _ 18.2

20012001 68000 3.0 12291 2.4 18.1

20022002 76000 11.8 13700 11.5 18.0

20032003 84000 10.5 15852 15.7 18.9

20042004 96000 14.3 18535 16.9 19.3

20052005 106000 9.4 20505 10.2 19.5

20062006 117000 10.4 22875 11.6 19.6

20072007 129000 10.3 26466 15.7 20.5 Source: *Container Intelligence Monthly. Clarkson. March 2008

**Economic Unit. SCA

Facilities and privileges granted toFacilities and privileges granted to


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Container ships heading the convoysContainer ships heading the convoys

Container ships are to be exempted from the escorting tugContainer ships are to be exempted from the escorting tugboat ( the rental value of escorting tugs is 8000 SDR ).boat ( the rental value of escorting tugs is 8000 SDR ).

The SCA has executed a widening and deepening project forThe SCA has executed a widening and deepening project for

BallahBallah west branchwest branch aiming at allowing modern containeraiming at allowing modern containerships up to 100,000 SCGT within the permissible dimensionsships up to 100,000 SCGT within the permissible dimensionsto join the second southbound convoy (N2) .to join the second southbound convoy (N2) .

Container ships carryingContainer ships carrying uncontaineriseduncontainerised general cargogeneral cargobesides the containers, shall not be subject to any surchargebesides the containers, shall not be subject to any surcharge..

container ships transiting the Suez Canalcontainer ships transiting the Suez Canal

In favorable navigational conditions, the limitIn favorable navigational conditions, the limit


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time for arrivals is to be extended, against atime for arrivals is to be extended, against a

payment of a surcharge equal to a percentage ofpayment of a surcharge equal to a percentage of

the normal transit dues with a maximum amountthe normal transit dues with a maximum amount..

Container ships are to be exempted from extraContainer ships are to be exempted from extra

dues on the top tier, if the top tier contains nodues on the top tier, if the top tier contains no

more than ten TEUmore than ten TEU

Suez Canal Container Traffic DevelopmentSuez Canal Container Traffic Development

2007&20082007&2008


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2007&20082007&2008

SCNT

20

25

30

35

40

45

50

M

.Ton

2007 2008

2007 33.0 31.4 34.2 34.1 36.8 35.0 38.8 38.7 38.3 39.6 38.2 39.9

2008 39.5 39.2 37.7 38.7 42.0 41.3 42.4 41.9 41.0 41.9 37.7 39.9

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Nov DEC


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Promoting the Suez Canal Route

Suez Canal Authority signed Four


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y g

Memoranda of Understanding (MOUs)with:

The Port Authority of New York & NewJersey On June 14, 2006.

Virginia Port Authority On June 21, 2006 and updated in December 12, 2007.

Maryland Port Administration On October

2,2006 .Georgia Port Authority on June 2, 2008.

Signing MOU with


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Georgia Port AuthorityJune 2, 2008


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N ew MOU s i g n i n g

Su e z a n a l H a l i f a x

BY THE END OF TODAY

Jan 15,2009A NEW MOU WILL BE SIGNED BY

SUEZ CANAL AUTHORITYAND

HALIFAX PORT AUTHORITY

Targets of the MOUs :


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g

Promoting trade between Asia and the

ECNA through the Suez Canal.

Generating business opportunities

Enhancing customer service.

Boosting economic growth

Development of ECNA-Asia container traffic

via Suez Canal


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via Suez Canal

390 401

686

1302

815 882

968

1003

0

500

1000

1500

2000

2500

2004 2005 2006 2007

1000

TEU

S.E.A- ECNA S. A - ECNA

12051283

1654

2306

Yearly avg. increase :

Total Container trade via Suez Canal 11.5%

ECNA S. Asia 5.3%

ECNA-S.E. Asia 35.2%

The SCA spares no


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The SCA spares no

effort for the sake of

ensuring a safe and

secure service for alltransiting Vessels;

thus contributing tothe prosperity of

world trade and allnations as well.Suez Canal Headquarter

Ismailia


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Thanks

Suez Canal Future

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