Uprising in Egypt : Repercussions and expectations

03 Mar 2011 - By Ashraf Ghazy, Port of Damietta, Egypt. - Industry Blog

February 10^th 2011

A Slump in Suez Canal Revenues

In Egypt a government-controlled e-site said that Suez Canal revenues has dropped 1.6% (from $US423.4 million in December 2010 to $416.6 million this January). Nevertheless, the figure is 8.6% higher than last year.

Officials confirmed that the Canal, a viable index of how the global trade is progressing, has not been impacted by the political turmoil that hit Egypt lately. One economic expert was quoted as saying that the surge in world oil prices coupled with the Government's commitment to keep the Canal open for international navigation, have done much favor to its revenues.

Meanwhile the Prime Minister, Ahmed Shafeik underlined that the Canal is working normally despite the unrest. Operations are proceeding at natural levels and the navigational passage is secured by the Armed Forces at the highest standards, supported by an internal e-surveillance system and lazer-aided cameras.

 

 February 11th 2011

The Canal is free of any foreign presence

A high-level SCA official denied allegations that USA navy units are positioned in the canal. Rumors spread by TV channels and newspapers that the United States Navy dispatched marine units to monitor canal operations against the backdrop of last month's disorders. The official said such rumors are wholly unfounded and Google Earth can be used by rumor-mongers and those interested to ascertain that no naval units of whatever nationality is present inside the Canal.

During the period 25 January – mid-February 2011, 958 vessels transited the Canal at a daily average of 47.9 ships, while overall tonnage for the same period reached 49.2 million tons averaging 2.5 million tons per day.

The big question and the big loss 

$3-6 billion is the Canal's annual revenue. But where does it go? Nobody has the answer in a country where 58% of the population is under poverty line!

In the same context, Government officials declared that in the first week after the so-called Youth Revolution, Egypt's tourism sector lost $1 billion. An economic report showed that loss sustained by transport sectors on aggregate have rocketed to L.E 15 million daily  - roughly a loss of L.E. 1 million by the underground, L.E. 4 million by the railway transport and L.E. 10 million by the maritime transport sectors. According to economists the national economy lost nearly L.E.100 billion in a week's time when looting and vandalism erupted.

Feeding the Turmoil

Social unrest and high prices for domestic consumption items, drove millions of Egyptians to the streets over the past month demanding an end to poverty, joblessness and corruption.

Almost all sectors of the Egyptian productive and service providing industries took to the streets in staged protests against low pay and unequal financial treatment. An expression that was a taboo for many years.

Positive Indicators

Meanwhile the interim government has introduced a number of amendments to the financial structure of the state. The constitutional modifications ordered  by the Supreme Military Council are positive signs towards reform. Although this is still not up to the demonstrator expectations, who insist that ministers of Interior and Justice together with Ahmed Shafiek leave since they are remnant of the old regime.

The Supreme Military Council declared that constitutional amendments will be balloted next April and parliamentary elections should follow in June, paving the way for Presidential elections under full judicial supervision in August. With the first day of October 2011, the Supreme Military Council should be handing reins over to the president elect.

Reason for the Drama

The Drama Egypt has witnessed throughout last 35 days or so was the result of anti-Mubarak demonstrations whereby youth and other social classes called for en end of Mubarak's regime, and the concomitant corruption and despotism. Bloody clashes occurred between demonstrators and anti-riot police, who used tear gas and water hoses to disperse the crowds, claiming the lives of hundreds and injuring thousands.

Ex-Interior minister Habib el-Adly, now in jail, promised Mubarak to eradicate the uprising  in three days. But  Adly was stunned by the overwhelming demonstrations and proved unable to handle the situation as planned.

Civil Defense Committees were formed hastily to cater for security and safety of dwelling areas and personal properties in several governorates. Civilians who defended themselves and belongings as bravely as veteran fighters, provided a competent substitute for an awkward police force.

However, on several occasions during the uprising and after their retreat , the police forces tried to entrap the army in problems with the public but army cadres managed to handle matters wisely.

 

Ashraf Ghazy

Damietta, Egypt.

March 2^nd 2011