First half of 2011 brings record revenue for Suez Canal Authority

The Suez Canal managing authority reported a 12.7% increase in quarterly revenue Thursday, despite political turmoil in Egypt and the infamous piracy risk in the Indian Ocean.

The Suez Canal Authority reported revenue of US $5.05 billion for the 2010/11 fiscal year, a record high since the canal was first opened.

The increased revenue was driven largely by an increase in shipping traffic through the canal, with a flow increase of 11.3%.

The Suez Canal is a vital source of foreign currency for the Egyptian economy and there had been speculation that popular uprisings and political turmoil in the North African nation might disrupt traffic through Suez.

Revenues for the first half of 2011 were at US 2.5 billion, a 12.7% increase on last year, following two years of decline due to the 2008 financial crash and 2009 recession, which hammered global trade.

The Suez Canal is a vital sea link for shipping lines, connecting the Indian Ocean with the Mediterranean and eliminating the need to sail around the southern tip of Africa, which adds weeks to an Asia-Europe crossing.