The Suez Canal is struggling to present itself as a major contender on the market, Chairman of International Port Management (IPM) Ammar Kanaan said Tuesday.
He further noted that the Suez Canal is attempting to offer competitive advantages for crossing through the Suez Canal in comparison with the Panama Canal.
Containerisation has contributed to overhauling the world economy over the past century and that companies must adapt with the recent developments.
He demanded that Egypt mechanise and develop the Port Said harbour. Trade movement from the east to the west represents 40% of the world’s trade, approximately 7.5% of which goes through the Suez Canal.
There has been positive impact of the Suez Canal and its new extension on decreasing the period of transit for ships. The new Panama Canal expansions however are expected to boost competition over world trade.
Half of Asia’s trade to the US passes through Suez Canal, while the other half passes through the Panama Canal, projecting growth in the container ship manufacturing and maritime transport industries in the near future, especially in Southeast Asia and the Middle East.
Kanaan highlighted the importance of protecting investors against legislative amendments that could affect previous deals and that investment risks must be equally proportioned between the private and public sectors.
He called for the amendment of certain legislations to better involve the private sector in maritime transport projects. He moreover demanded that investment in infrastructure occur through partnership between the private and public sectors. The merging of shipping lines is expected due to the slowdown in the trade movement between east and west.
Trade movement between Europe and Asia does not directly affect traffic in the Suez Canal and the Suez Canal is largely dependent on east-west trade movement.