Suez Canal targets logistics hub status to increase revenue

CAIRO - 11 November 2024: Chairman of the Suez Canal Authority (SCA) Osama Rabie met with Finance Minister Ahmed Kojak to discuss the financial performance of the SCA and its forward-looking strategy to boost revenues across its various projects and companies.

The meeting, held at the Finance Ministry’s headquarters in the New Administrative Capital, included key financial officials, such as Dr. Montaser Khalil, Head of Financial Management, and representatives from multiple departments.

During the meeting, Rabie presented the financial results of the SCA for the 2023-2024 fiscal year and outlined potential avenues to enhance revenues for the upcoming fiscal year. According to an official statement from the SCA, the organization seeks to evolve beyond traditional transit fees by pursuing a multi-faceted growth strategy.

Rabie emphasized that the SCA aims to diversify its income sources, moving beyond reliance solely on ship transit fees. This is part of a strategic initiative to establish the Suez Canal as a leading regional hub for logistics services. Additionally, the SCA is committed to advancing Egypt’s position in the maritime industry by fostering partnerships with national entities and the private sector to localize marine industries within the country.

The SCA has made significant strides in supporting its subsidiaries that specialize in ship maintenance, repair, and other maritime services. Rabie highlighted key financial achievements in these areas and discussed strategies to further increase revenues moving forward.

As part of this vision, the SCA has recently founded new companies, including the Suez Canal Ports Development Company, in collaboration with the Ministry of Transport, and the Suez Canal Modern Boats Company, in partnership with the Red Sea Shipyard Company, focused on advancing Egypt’s yacht manufacturing sector.

The meeting also covered preparations for the SCA’s general budget for the 2024-2025 fiscal year, which will align with the state’s broader economic policies for public-sector entities. This budget will support the SCA’s expansion into various logistical services, in line with Egypt's strategic goals to enhance its economic and infrastructural growth through governmental budgetary inclusivity.