File Photo: Osama Rabie, chairman of Egypt s Suez Canal Authority (SCA). AFP
Rabie made this remark during a meeting with Gerard Mestrallet, France’s envoy for the India-Middle East-Europe Economic Corridor (IMEC).
The IMEC is a ship and rail route proposed at the 2023 G20 summit in New Delhi.
"The crisis highlighted the Suez Canal's critical role in ensuring stable global supply chains," added Rabie.
He explained that many shipping lines using the Cape of Good Hope route faced higher costs from freight, operations, marine charges, fuel usage, and increased carbon emissions due to longer journeys.
He noted positive signs for regional stability, mentioning ships adjusting their routes back to the Suez Canal, per an SCA statement.
The Red Sea tensions have affected the canal's revenues, which dropped by more than 60 percent — around $7 billion — in 2024.
Tensions in the Red Sea have escalated due to recurring attacks on ships linked to Israel, the US, and the UK near the strategic Bab el-Mandeb Strait by Yemen's Houthi rebels. The attacks, according to the Houthis, are meant to pressure Israel to end its genocidal war on the Gaza Strip.
The attacks forced shipping companies to reroute their vessels to the much longer Cape of Good Hope instead of the Suez Canal.
The canal links the Red Sea and the Mediterranean, creating the shortest shipping route between Europe and Asia. It moves 12 percent of all world trade and is one of Egypt's primary sources of foreign currency, alongside tourism and expat remittances.
Additionally, it is connected to the Gulf of Aden via the Bab El-Mandeb Strait between Yemen and Djibouti.
Potential cooperation with IMEC
Mestrallet insisted the IMEC would not compete with the canal. He explained that the new corridor, currently under construction, would have a different capacity and volume of trade, relying on a combination of maritime and rail transport.
He stated that the corridor routes are still under study, with several options considered, including potential cooperation with Egypt through the Suez Canal.
Egypt’s Deputy Assistant Minister of Foreign Affairs, Naglaa Naguib, who also attended the meeting, highlighted the country's infrastructure development over the past decade, aiming to establish it as a key hub connecting Asia and Europe.
According to a Foreign Ministry statement, Naguib noted potential expansion to the Far East, Western Europe, and Africa, which could create future cooperation opportunities for Egypt in the IMEC.
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