“The New Suez Canal: Economic Impact on Mediterranean Maritime Trade”
Cairo – Nov. 29, 2015 – At the Italian Embassy in Cairo, AlexBank and SRM presented today to Italian and Egyptian entrepreneurs and authorities a report conducted by SRM Research Center of Intesa Sanpaolo in collaboration with AlexBank research team under the title “The New Suez Canal: Economic Impact on Mediterranean Maritime Trade”.
The Ambassador of Italy to Egypt H.E. Maurizio Massari, Mr. Maurizio Barracco acting Chairman of AlexBank Board of Directors, Mr. Dante Campioni CEO and Managing Director of AlexBank welcomed the attendees and speakers at the event.
Eng. Yehia Zaki, Eng. Karim Sami Saad chairman of Samcrete, Eng. Abdel Fattah El Didi president of El Didi Group and Mr. Atter Hannoura, Head of PPP unit at the Ministry of Finance, gave their testimony on the projects to be launched in the Suez area.
Amongst the attendees were Egyptian government officials, Italian companies operating in Egypt, members of the Italian Egyptian Business Council, CEO of banks and companies.
The report reveals the canal’s traffic trends and the planning framework of the new infrastructure in addition to the potential opportunities and treats for maritime shipping companies and port operators. Indicators show that the New Suez Canal led to a decrease in transit time from 18 to 11 hours, which will be reflected on the operating costs; it is estimated that using the Suez route, any shipping company may have now average savings between 5% to 10% of total operating costs according to the business characteristics of the companies.
It also monitors the expected repercussions of the New Suez Canal on the transportation, logistics, tourism sectors and all operations related to maritime flows as part of the Canal’s development as well as on investment opportunities and new projects that the government intends to implement in the Suez area. In addition, it shows how the New Suez Canal will be able to position the region amongst the major logistics centres across the globe.
The Ambassador of Italy to Egypt H.E. Maurizio Massari, stated “having this important event under the auspices of the Italian Embassy confirms the strong relationship between Egypt and Italy. It reflects both the effective and active role of AlexBank and Intesa Sanpaolo Group as facilitators for increasing trade between our two countries, as well as the interest of the Italian companies to seize new business opportunities related the development of the Suez Canal area”.
Dante Campioni, CEO and Managing Director of AlexBank stated, “The research, while confirming the now enlarged prominence of the Suez Canal in managing the commercial traffic crossing the Mediterranean area, affirms the commitment of Alexbank and Intesa Sanpaolo Group to provide the market with accurate studies with the aim to support decision makers in their analysis. The paper presented today highlights the immediate and perspective fallout on maritime traffic, stemming from the decision to deliver this gigantic opera, impressive not only for its extent but even more for the speed at which it was completed. The Suez Canal expansion provides the Egyptian economy with a tremendous potential for future growth as, besides the additional direct revenues certainly important for the Country, gives opportunities to develop a huge number of projects in the logistic and industrial sector, able to aliment further flows of domestic and international investments which will enhance the job and wealth opportunities for the population in the region.”
The presentation of Mr. Massimo Deandreis, Managing Director of SRM of Intesa San Paolo, highlighted Egypt’s role in the global supply chain and the projected impact of current strategic investments in maritime transport. The report also analyzes the expansion of the New Suez Canal, as well as Egyptian ports on the Mediterranean and Red Sea, which are attended to be the main beneficiaries of the project, in addition to other ports on the Gulf.
It also addresses the importance of Port Said East Canal as a separate entrance to East Port Said port, allowing the entry and exit of vessels in isolation from convoys crossing the Suez Canal.
Mr. Deandreais stated: “the New Suez Canal will have a huge impact on shipping and global trade and it will increase the centrality of the Mediterranean also for the routes between Asia and East Coast of United States.