The infrastructure cost of the Suez Canal Development Project in Egypt is likely to reach US$15 billion.
PTI previously reported that the Suez Canal had reached 67.5% completion, and a comprehensive plan for the project will be announced within the next two weeks.
The Suez Canal project will include the development of 7.6m ha of land around the canal into an international and industrial logistics hub to attract more ships and generate more income, according to Trade Arabia.
It is hoped that the new canal will expand trade along what is the fastest shipping route between Europe and Asia.
Andy Lane of CTI Consultancy, said: “There is often a perception (which both Panama and Nicaragua/HKND have recently alluded to) that if you build infrastructure, that will trigger trade growth. Trade growth is in reality however influenced by many more drivers. No doubt a Canal makes the transportation of traded goods easier, faster and cheaper – it is however not the primary driver.
“But still, if your $15bn investment returns $5bn per year, that remains a good investment – and Suez will remain important to the state of Egypt.”
The completed canal is expected to boost annual revenues to around $13.5 billion by 2023, in comparison to the $5.45 billion amount it generates currently.
(Source: World Crunch)