Suez Canal is 'Lifeline' for Egypt, Says Authority Head

FILE PHOTO - People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
FILE PHOTO - People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
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Suez Canal is 'Lifeline' for Egypt, Says Authority Head

FILE PHOTO - People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh
FILE PHOTO - People sail on a boat near a container ship crossing the Gulf of Suez towards the Red Sea before entering the Suez Canal, near El Ain El Sokhna in Suez, east of Cairo, Egypt, March 17, 2018. REUTERS/Amr Abdallah Dalsh

One hundred and fifty years after the Suez Canal opened, the international waterway is hugely significant to the economy of modern-day Egypt, which nationalized it in 1956.

The canal, which links the Mediterranean to the Red Sea, was opened to navigation in 1869 and was expanded in 2015 to accommodate larger ships. 

Dug in the 19th century using "rudimentary tools," the canal has today become "a lifeline for Egypt and countries around the world," Admiral Osama Rabie, head of the Suez Canal Authority, told Agence France Presse in an interview.

"We give credit to Ferdinand de Lesseps for putting forward the idea," he said, referring to the French diplomat who masterminded the waterway dug over a decade between 1859 to 1869.

But he insisted it was thanks to the "genius" of the Egyptian people that the project really came to life.

"It was a miracle by all accounts to excavate a 164-kilometer-long canal in 10 years with rudimentary tools," he said.

"A quarter of Egyptians took part in the excavations, that was about a million citizens out of the population of 4.5 million people at that time." 

In 2015, Egyptians threw their support behind President Abdel Fattah al-Sisi's project to expand the canal, "purchasing 64 billion Egyptian pounds (3.5 million euros, $3.8 million) of investment certificates within eight days". 

Thanks to that project, transit time has now been cut from 22 to 11 hours, and the number of vessels crossing daily has increased from an average of 40-45 to 60-65 giant tankers, he said. 

Nowadays, container ships account for more than half of the canal's total traffic, with some of them being among the largest in the world reaching a capacity of up to 23,000 TEU (twenty-foot equivalent unit). 

Giant oil tankers carrying more than 200,000 tons can now transit through the canal as well. 

Authorities have also sought to develop the Sinai Peninsula, which lies on the eastern edge of the canal.

"We have also dug six tunnels under the Suez Canal to facilitate movement crossing to and from the Sinai," Rabie told AFP.

"Before we used to talk about developing the Sinai peninsula without any serious decisions having been taken. Now access is easy for people and investors." 

Egypt is also developing a free-zone trade hub spanning 461 square kilometers known as "the Suez Canal Economic Zone". 

"Many projects exist along the banks," said Rabie, citing ship supply zones, pharmaceutical factories and car assembly plants. 

He maintained also that the canal "is perfectly secured" under the command of the Egyptian armed forces. 

Ongoing fighting between the Egyptian army against militants in North Sinai "has not affected" the canal or trade, he stressed.



Saudi Gold Refinery Obtains 10 Gold Exploration Licenses in Tanzania

A gold mine in Saudi Arabia (SPA) 
A gold mine in Saudi Arabia (SPA) 
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Saudi Gold Refinery Obtains 10 Gold Exploration Licenses in Tanzania

A gold mine in Saudi Arabia (SPA) 
A gold mine in Saudi Arabia (SPA) 

Saudi Gold Refinery Company (SGR) announced Sunday it has secured 10 licenses to explore gold in the Republic of Tanzania, covering a total area of nearly 1,000 square kilometers, in a move aimed at expanding the company’s mining operations outside the Kingdom.

The company said it has allocated an initial investment of $10 million to carry out exploration activities, within an ambitious plan to gradually increase total investments to $100 million. These investments will support the development, establishment, and operation of gold mines, with commercial production targeted to commence by 2030.

The announcement follows a visit to Tanzania by Faisal Suliman Al-Othaim, Deputy Chairman of the Board of Directors at SGR.

According to the company, this milestone is supported by the Ministry of Investment and the Saudi Embassy in Tanzania, highlighting the importance of strengthening Saudi investments abroad and creating new opportunities for national companies in the global mining industry.

SGR continues to advance its global expansion strategy through its international investment arm, UGM Tanzania co, which oversees its operations and investment activities in Tanzania and Ethiopia.

The company also maintains ongoing projects and business activities in Egypt and the Sultanate of Oman, while actively exploring opportunities in additional markets to further expand its global footprint and create sustainable value across the mining sector.

In the Saudi market, the company plans to develop six to ten mines before 2030, at an average rate of two mines per year. These plans are supported by the Ministry of Industry and Mineral Resources, the Saudi Industrial Development Fund, financial institutions and other relevant authorities and stakeholders.

 

 

 


Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
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Oil Falls as Trump Says New Iran Attacks ‘Unlikely’

A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)
A worker walks past oil pipes at a refinery in Wuhan, Hubei province March 23, 2012. (Reuters)

Oil prices fell at Monday's open after US President Donald Trump said he was highly unlikely to order new Iran attacks while talks to end the conflict make progress, despite both nations' reports of attacks on ships in or near the Strait of Hormuz.

Brent was down 84 cents, or 0.85%, to $97.48 a barrel by 0138 GMT, while West Texas Intermediate fell 32 cents, or 0.35%, to $90.51 a barrel.

The fall reversed minor gains made on Friday’s settlement as the market assessed the possibility of further US ‌strikes on Iran, ‌although Brent fell 17% last week, the ‌steepest ⁠weekly drop since the ⁠start of the COVID pandemic and the biggest in absolute terms, according to LSEG data dating back to 1988.

"It depends on whether or not they sign a very strong agreement," Trump told CNN in a phone interview. "The answer is, highly unlikely it's going to be necessary."

Trump had hinted at renewing attacks on Iran after ⁠last week's US midterm elections, but there has ‌been no sign of a large-scale ‌US military operation. Iran has said it would respond by striking US and ‌Israeli targets.

Tim Waterer, chief analyst at KCM Trade, called ‌Trump's comments "more measured" but said "the market is still waiting to see whether the midterms have produced a lasting shift in Trump’s approach to the conflict, or whether this is just another temporary change in tone."

Oil is headed ‌for a glut again as recovering Middle Eastern oil flows, rising production from other countries and ⁠weak demand have ⁠pushed global supply above consumption, JPMorgan said in a report on Friday, estimating a surplus of 1.1 million barrels per day in September, widening to 1.4 million bpd in October.

On Sunday, Iraq reached an understanding with the US to allow Iraqi oil exports through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein said in an interview with Al Jazeera.

He said Iraq's losses from the Iran war and disruptions to oil exports had reached $60 billion.


Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)
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Bahraini Transport Minister to Asharq Al-Awsat: Each Country to Finance Its Share of Gulf Railway Project

A conceptual rendering of the Gulf railway interconnection project. (X)
A conceptual rendering of the Gulf railway interconnection project. (X)

The Gulf Cooperation Council (GCC) member states took a new step toward completing the railway interconnection project by signing the project's general agreement in Bahrain on Sunday. This comes as part of efforts to establish an integrated transport network linking the six nations and boosting the movement of passengers, goods, and commercial trade among them.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa told Asharq Al-Awsat that each country will fund and execute the portion of the project located within its territory.

Meanwhile, the costs, fees, and expenses associated with the shared interconnection components among member states will be determined collectively, he added.

He explained that the agreement establishes a joint framework for the project's execution and operation, while defining the obligations of member states and their coordination mechanisms.

He noted that the network, which extends some 2,117 kilometers, aims to transport 6 million passengers and 200 million tons of freight by 2030, with the figures projected to rise to more than 8 million passengers and 271 million tons of freight by 2045.

The project spans from Kuwait, passing through Saudi Arabia, Bahrain, Qatar, and the UAE, all the way to Oman, with the goal of achieving full network operations by December 2030.

According to the minister, interconnection lines between adjacent countries can become operational as soon as their components are completed, without the need to wait for the entire Gulf network to be finalized.

National financing and potential partnerships

On private sector participation, Al Khalifa said that it remains one of the viable options for financing, executing, or operating certain components of the project, depending on the outcomes of economic and financial studies. He stressed that there is no unified public-private partnership model approved across the entire network.

There are currently no pre-existing agreements with specific international partners to finance or execute the project, he said. However, the expertise of global companies in the fields of design, engineering, technology, and operating systems could be utilized based on the project's needs and its various phases.

Bahraini Minister of Transportation and Telecommunications Dr. Sheikh Abdulla bin Ahmed Al Khalifa.

Concerning the project's announced completion rate, the minister explained that the 50 percent figure represents the average progress achieved across member states, and does not mean that half of the construction work for the entire Gulf network has been completed.

The project's cost estimates are currently undergoing review and updates in light of economic shifts, rising prices for materials and services, construction costs, and inflation, he revealed without specifying an updated total cost at the present time.

Returns beyond passenger and freight transport

Al Khalifa said that the economic impact of the project is not limited to facilitating passenger movement and freight transport, but extends to improving supply chain efficiency, boosting trade among GCC countries, and linking industrial centers, economic zones, and logistical hubs, as well as supporting employment and investment opportunities.

He added that determining the project's exact contribution to the gross domestic product (GDP) or estimating expected savings in time and costs remains premature, given that returns vary depending on transport routes, the nature of the cargo, and the points of origin and destination.

In light of the challenges facing maritime navigation in the region, the minister stressed that the Gulf railway network is not intended to serve as a substitute for maritime transport. Instead, it acts as a complementary route that boosts transport options and connectivity among GCC nations, increasing the resilience of supply chains against disruptions that could affect various modes of transportation.

He noted that integration between ports, roads, railways, and airports will strengthen the flexibility of the Gulf transport system, while connecting to broader international logistical corridors remains a future possibility contingent on completing studies, understandings, and coordination with the relevant countries and entities.

King Hamad Bridge to link Bahrain and Saudi Arabia

Regarding the connection between Bahrain and Saudi Arabia, Al Khalifa explained that the King Hamad Bridge project includes road lanes and railway lines, enabling the international passenger station in Bahrain to connect with the Saudi railway network and forming one of the essential components for completing the Gulf interconnection.

He added that work is underway on the privatization procedures for the King Fahd Causeway Authority, alongside completing the necessary studies and procedures to transition to the execution of the new bridge project.

Achieving the connection between Bahrain and Saudi Arabia is a fundamental requirement for operating the railway line between the two countries within the project's targeted timeframe in December 2030,e he said.