The Suez Canal is a major maritime transportation passage between Europe, Asia and Africa. If you need to ship cargo by ocean freight shipping through that part of this world, this is where it usually travels through. For over one hundred years, vessels would have to travel through the Suez Canal, one direction at a time. This was because the Suez Canal was only wide enough for one ship at a time. As a result, there have been numerous bottlenecks and accidents at the Suez Canal. With this way, it would take approximately 11 hours for a ship to pass through. And the Journal of Commerce recently reported that the rate of containerships going through the Suez Canal is currently declining.
The obvious solution is to widen the Suez Canal, so that multiple ships can pass through at a given time, meaning using both directions at once. Egypt is currently constructing a project to widen the Suez Canal. This project is anticipated to double capacity and lower travel time to only 3 hours. This project is the first expansion of the Suez Canal in 145 years.
Egypt expects to complete the construction by August 5th, 2015. Most experts originally projected the completion date to take five years; this project will only take one year. Egypt invested $4 billion into this project. They expect to receive billions of dollars annually from toll fees. Big risks to the project include flooding, which already occurred in construction, and the state of the World economy.
The project also features a nearby hub with a free trade zone and logistics services. Those companies that want to learn more about the new Suez Canal should speak to their trusted freight forwarder.