Suez Canal's revenue soars 35% in FY 2022/23: Chairman

Ahram Online , Wednesday 21 Jun 2023

Suez Canal revenue surged by 35 percent to $9.4 billion in FY 2022/23, up from $7 billion the previous year, according to Suez Canal Authority (SCA) Chairman Osama Rabie.

Ship in the Suez Canal. Ahram Gate.
Ship in the Suez Canal. Ahram Gate.


During a press conference on Wednesday, Rabie attributed the Suez Canal's revenue increase to factors such as the Ukrainian-Russian war and ongoing development projects by the SCA, among other factors.

Planned IPO

Rabie announced that the SCA is preparing to offer a 20 percent stake in Canal Rope on the Egyptian Exchange (EGX) as part of Egypt's government IPO programme.

He stated that the Suez Canal Holding Company was established to facilitate the offering.

Rabie expects the offering of Canal Rope, a highly profitable company, to generate additional revenue for the canal.

The SCA owns seven companies, six of which were losing money until they underwent development under the SCA's asset maximization strategy, according to the chairman.

Only one of the SCA's companies is currently reporting losses, while the remaining six are profitable, he noted.

Crossing Pricing

Rabie explained that the pricing for canal transit is based on factors such as fuel prices, ship volume, and provided services.

"We are currently reviewing our transit tariffs and will announce in October whether we will increase or maintain prices," Rabie stated.

Any pricing changes will take effect in January 2024, according to Rabie.

In January 2023, the SCA raised transit fees by 15 percent for all vessels and 10 percent for dry bulk and cruise ships.

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