As FY 2022/2023 approaches its end on 30 June, Suez Canal breaks a record revenue with 35% increase, but how did this increase happen?
During a press conference, Chairman and managing Director of Suez Canal Authority Osama Rabie explained the reasons behind the record revenue increase of the Suez Canal.
He attributed the growth to various factors, including the Ukrainian-Russian war and ongoing development projects initiated by the Suez Canal Authority (SCA). with planned investments from China, India and UAE among many others.
Rabie also announced that the SCA plans to offer a 20 percent stake in Canal Rope, a highly profitable company, through an initial public offering (IPO) on the Egyptian Exchange (EGX). This move is part of Egypt's government IPO program, and the establishment of the Suez Canal Holding Company will facilitate the offering.
Rabie expects that the IPO will generate additional revenue for the canal. The SCA owns seven companies, out of which six were previously experiencing losses but became profitable after undergoing development under the SCA's asset maximization strategy. Currently, only one company is reporting losses.
Rabie mentioned that the pricing for canal transit depends on factors such as fuel prices, ship volume, and provided services. The SCA is reviewing its transit tariffs and will announce in October whether there will be any price adjustments. If changes occur, they will take effect in January 2024. In January 2023, the SCA had already increased transit fees by 15 percent for all vessels and 10 percent for dry bulk and cruise ships, al Ahram reported.