Egypt Plans Another Suez Canal

[jimmy olsen]

LOL

Good luck with that.

http://www.dailynewsegypt.com/2014/08/05/al-sisi-kicks-new-suez-canal-project-lays-tightened-completion-deadline/

President Abdel Fattah Al-Sisi announced Tuesday a new Suez Canal project to dig a 72-kilometre canal alongside the original, to be implemented over a year at a cost of EGP 29bn ($4bn).

The announcement was made during the inauguration ceremony of the Suez Canal Axis Development Project on Tuesday in Ismailia. The Chairman of the Suez Canal Authority Mohab Memish provided a detailed presentation on the projects that come under the national project.

Al-Sisi called on the army's engineering corps, who will directly supervise the project, to conclude the project in one year instead of the previously scheduled 3–year timeline. Al-Sisi attributed the shortened time period to the "the deteriorating security" which could threaten the project.

The president called on all Egyptians to participate in funding the project through a stock market IPO (Initial Public Offering), asking Egyptians resident in the country to contribute EGP 100, and those living abroad to donate $100.

The president said the government had refused any foreign participation in the project, stressing that only national banks, companies and investors would be able to finance it.

Memish said that the new canal will be established to increase the absorptive capacity of the Suez Canal to 97 passing ships per day, up from the current rate of 49. The project would involve 35kms of dry digging and 37kms of "expansion and deep" digging.

Upon completion, the project would see canal revenues increase by 259%, Memish added, up from current annual revenues of $5bn.

The new canal, which would ensure that shipping traffic would not stop, will be carried out with the participation of the armed forces along with 17 companies.

The Suez Canal Axis Development Project was adopted by the current government after being proposed during the rule of former president Mohamed Morsi. It had been rejected by the armed forces at that time for "national security" concerns.

The current plan for the project was amended by the armed forces.

The cost of the national project amounts to EGP 50bn, and would generate revenues expected to record $1bn annually, Prime Minister Ibrahim Mehleb said on Sunday. Mehleb added that the government will present its plan for the Suez Canal Axis Development Project to consultancy firms within six months.

The project entails extensive development plans, including: the construction of four new seaports in the three provinces surrounding the canal; a new industrial zone west of the Gulf of Suez; and a technology valley in Ismailia.

By the beginning of 2015, the infrastructure work in the project would be issued to international companies on a usufruct basis for 25 years, according to Memish.

During his speech, Al-Sisi called on Egyptians to participate in Long Live Egypt Fund as the country needs around EGP 100bn to implement a number of necessary projects. He added that collecting donations is the "only solution" to find funds "because we will not ask for loans from foreign countries nor businessmen", he said.

Al-Sisi added that Egypt requires an additional EGP 32bn to resume suspended projects.

After the inauguration ceremony, Al-Sisi headed to the east of the canal to sign a command to begin digging the new canal.

[DGuller]

So they want to build another Suez Canal for the cost of Tappan Zee Bridge replacement?  It would be very humiliating to NY if they actually succeed at doing that for anywhere near that budget.

[alfred russel]

So they want to build another Suez Canal for the cost of Tappan Zee Bridge replacement?  It would be very humiliating to NY if they actually succeed at doing that for anywhere near that budget.

I've seen studies showing that the cost of urban infrastructure in the US is way out of line with the rest of the world, including western europe. We suck at this stuff.

[DGuller]

So they want to build another Suez Canal for the cost of Tappan Zee Bridge replacement?  It would be very humiliating to NY if they actually succeed at doing that for anywhere near that budget.

I've seen studies showing that the cost of urban infrastructure in the US is way out of line with the rest of the world, including western europe. We suck at this stuff.

Agreed.  The cost of infrastructure is a cancer on our economy.  I imagine that unions/organized crime have a lot to do with it.

[Darth Wagtaros]

It must.  We shouldn't have roads and bridges that suck because it costs a billion dollars to repair them.

[Viking]

259% - that is oddly specific. I'm all for upgrading the canal, but before you go and blow billions on digging a ditch in the desert ask yourself, does this ditch need to be dug and are you really gonna get a 259% boost to income? Is there even a market for doubling the number of ships? Will the customers pay the extra 80%?

[Neil]

259% - that is oddly specific. I'm all for upgrading the canal, but before you go and blow billions on digging a ditch in the desert ask yourself, does this ditch need to be dug and are you really gonna get a 259% boost to income? Is there even a market for doubling the number of ships? Will the customers pay the extra 80%?

Why wouldn't they, given that their only other option is to ship their goods around Africa?

[Tamas]

I very much doubt the money raised with this excuse is going to be spent on this.

[Viking]

259% - that is oddly specific. I'm all for upgrading the canal, but before you go and blow billions on digging a ditch in the desert ask yourself, does this ditch need to be dug and are you really gonna get a 259% boost to income? Is there even a market for doubling the number of ships? Will the customers pay the extra 80%?

Why wouldn't they, given that their only other option is to ship their goods around Africa?

For the same reason they aren't being charged 80% already.

[celedhring]

The enlarged Panama Canal will steal a lot of Asia-Atlantic traffic for ships that are currently using the Suez route because they are too large to fit in the current Panama Canal. So Egypt has to react in some way.

[PDH]

They should make it perpendicular to the old one.  It would look neat.

[Valmy]

They should make it perpendicular to the old one.  It would look neat.

A Canal that will connect Alexandria to Eilat.  The scenic route between the Mediterranean and the Red Seas.

[Viking]

The enlarged Panama Canal will steal a lot of Asia-Atlantic traffic for ships that are currently using the Suez route because they are too large to fit in the current Panama Canal. So Egypt has to react in some way.

Is that from your EUIV MP game?

[jimmy olsen]

The enlarged Panama Canal will steal a lot of Asia-Atlantic traffic for ships that are currently using the Suez route because they are too large to fit in the current Panama Canal. So Egypt has to react in some way.

Is that from your EUIV MP game?

They started work on it back in 2007
http://en.wikipedia.org/wiki/Panama_Canal_expansion_project

[KRonn]

So they want to build another Suez Canal for the cost of Tappan Zee Bridge replacement?  It would be very humiliating to NY if they actually succeed at doing that for anywhere near that budget.

I've seen studies showing that the cost of urban infrastructure in the US is way out of line with the rest of the world, including western europe. We suck at this stuff.

Yeah, sometimes we do suck at it, and it's very costly too. The Big Dig in Boston, a tunnel under the city that replaced the surface highway. Initial cost estimates of 3billion, which ballooned to 16bil and rising as the tunnel is in constant need of repair and the construction firms have been mostly let off the hook for it. Now some investors and state pols want to build Cape Wind, another very costly wind farm offshore of Cape Cod. Will cost a lot more for energy received, while Canada is willing to sell wind energy for much cheaper. But too many palms being greased and political pressure to build the damn thing. Still may not get built but is getting closer. Horrid track record on building stuff.

Mass had a functioning health care web site but after the governor didn't push for waivers to the ACA the site had to conform to the ACA changes and whatever else at steep cost, and doesn't work. Being fixed at steep cost and in the meantime people are given free premiums since it's nearly impossible to sign up on the site. Great work again, and very costly with the poor work, poor management by the state but of course they try and put all the blame on the private contractor.