The New Suez Canal will contribute to decreasing the maritime transportation companies’ total operating costs between 5-10%, according to a new study by Intesa Sanpaolo Group, Bank of Alexandria’s research centre.
According to the study “New Suez Canal: Economic Impacts on Mediterranean Maritime Trade”, the new canal will decrease transit time from 18 hours to only 11 hours, which will reflect on operating costs.
According to the study, which was conducted in coordination with the Italian embassy in Cairo, the New Suez Canal area will be among other major logistic areas in the world.
The new canal will positively influence transportation, logistics, and tourism sectors as well as other activities related to maritime transportation in Suez Canal Development Axis.
It also boosts competition for available investment opportunities and the new projects, which the government intends to implement in the canal area.
The study analysed the canal’s traffic trends and the planning framework of the new infrastructure, in addition to the potential opportunities and challenges to change maritime routes determined by shipping companies and port operators in particular.
“Cooperation with Bank of Alexandria, affiliated to Intesa Sanpaolo Group, will contribute to increasing trade between Egypt and Italy,” according to Italian Ambassador to Egypt Maurizio Massari, “as well as encouraging Italian investors to grab promising business opportunities such as the development of the Suez Canal area”.
“The study highlights the importance of the New Suez Canal to commercial maritime traffic in the Mediterranean area,” CEO and Managing Director of Bank of Alexandria Dante Campioni said. “It also affirms the commitment of Bank of Alexandria and Intesa Sanpaolo Group to provide the market with accurate studies that aim to support decision makers in their analysis”.
Director of Operations at Dar Al-Handasah Yehia Zaki, Chairman of Samcrete Karim Sami Saad, President of El-Didi Group Abdel Fattah El-Didi, and Head of PPP unit at the Ministry of Finance Atter Hannoura delivered a presentation on the projects to be launched in the Suez area, according to a press statement.
Amongst the attendees were Egyptian government officials, representatives of Italian companies operating in Egypt, members of the Italian Egyptian Business Council, and CEOs of banks and companies.