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Suez Canal Head Says Egypt Studying Further Expansion of Waterway

The Suez Canal connecting the Mediterranean Sea to the Red Sea is pictured from the window of a commercial plane flying over Egypt, December 18, 2019. (Reuters)
The Suez Canal connecting the Mediterranean Sea to the Red Sea is pictured from the window of a commercial plane flying over Egypt, December 18, 2019. (Reuters)
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Suez Canal Head Says Egypt Studying Further Expansion of Waterway

The Suez Canal connecting the Mediterranean Sea to the Red Sea is pictured from the window of a commercial plane flying over Egypt, December 18, 2019. (Reuters)
The Suez Canal connecting the Mediterranean Sea to the Red Sea is pictured from the window of a commercial plane flying over Egypt, December 18, 2019. (Reuters)

Egypt is studying further expansions of the Suez Canal to extend and complete a second channel of the waterway, the canal's head said on Monday, a move that could allow for higher volumes of shipping and prevent blockages from halting traffic.

The comments come as the canal is seeing a sharp fall in revenue due to shipping companies diverting away from the waterway, the shortest route between Europe and Asia, because of attacks by Houthi militias in Yemen against ships in the Red Sea.

Any new extension would come on top of current work to extend the second channel by 10 kilometers, and to deepen and widen a section of the canal.

That work was expedited after the Ever Given, a giant container ship, ran aground in a single lane section of the canal in March 2021, stopping traffic for six days.

The canal is a key source of scarce foreign currency for indebted Egypt, which spent an estimated $8.2 billion on an expansion of the canal that opened in 2015 and included the creation of a 35-km (22-mile) parallel waterway.

Canal revenues have increased gradually but by less than officials had forecast, reaching a record $9.4 billion in the financial year ending in June 2023, before dipping by at least 40% at the beginning of this year due to the Houthi attacks.

Initial studies on an additional expansion would take about 16 months, and would include feasibility, environmental and engineering studies, as well as soil and dredging research, Suez Canal Authority (SCA) Chairman Osama Rabie said in a statement.

The project would need governmental approvals and would be funded through the SCA's investment budget, to avoid "placing any additional burdens on the state's general budget", the statement added.

Rabie said it could raise the competitiveness of the canal and allow it to take more and bigger ships.

The 2015 canal expansion is one of a number of mega-projects pursued under President Abdel Fattah al-Sisi.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."