Proceedings of the 10th International Academic Conference, Vienna

THE PROSPECTS OF DEVELOPING SUEZ CANAL REGION – A FUTURISTIC VISION

NAGLAA ZAAFARANY, SAWYIA ALSAHAR, SAWYIA ALSAHAR

Abstract:

Located strategically between three continents which hold thousands of markets and industrial global zones, the Suez Canal is considered to be the shortest link between the east and the west due to its unique geographic location. This importance is getting augmented with the evolution of maritime transportation of the world trade, being the cheapest means of transportation, whereas more than 80% of the world trade volume is transported via waterways. Saving the distance for ships has its potential effect on the cost of time and on operational costs for materials and commodities that are shipped through the Canal, maximizes this importance. After the Egyptian revolution on 2011 and the increasing need to develop the national economy of Egypt, a major project to develop the Suez Canal passage way was launched by the Egyptian government on 2012. This paper aims to investigate the impact of developing the region of the Suez Canal passage on Egyptian economy and the world economy. In order to achieve this purpose a research methodology consisting of literature review is used to achieve an in depth understanding of the importance of Suez Canal in global trade. Second part of the paper investigates the plans laid by the Egyptian government to develop the corridor as a world logistics hub. The third part introduces the idea of constructing a similar route of Suez Canal in Sinai to maximize the benefits of the developed area and the impact this can have on Egyptian and global trade.

Keywords: Suez Canal, Egypt, Egyptian Economy, Economy, world trade, maritime transportation

PDF: Download