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Suez Canal Authority to Raise Transit Fees by 15% in 2023

Suez Canal International Corridor in Egypt (Asharq Al-Awsat)
Suez Canal International Corridor in Egypt (Asharq Al-Awsat)
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Suez Canal Authority to Raise Transit Fees by 15% in 2023

Suez Canal International Corridor in Egypt (Asharq Al-Awsat)
Suez Canal International Corridor in Egypt (Asharq Al-Awsat)

Egypt plans to raise fees for ships passing through the Suez Canal by 15% in 2023, the Canal Authority's Chairman Osama Rabie said on Saturday.

Transit fees for bulk and tourist ships will be raised by 10%, Rabie added.

The fee increase will be applied starting Jan 1, 2023.

Rabie confirmed in a press statement on Saturday the Authority’s keenness to apply a balanced and flexible strategy on pricing and marketing that serves its own interest and that of its clients.

“The strategy also takes into consideration the various changes in global economy through clear mechanisms that include calculating a vessel’s transit tolls depending on the savings it achieves by transiting through the Canal.”

This system works with navigational circulars issued and updated by the Authority according to real-time changes for all the categories of transiting vessels, which allows for amending the transit tolls effectively in case of changes in the global navigation market, the statement read.

“This eventually allows for providing navigational services for transiting vessels that are in line with the Authority’s standards policy to ensure the Canal's position at the forefront as the world's optimal, fastest and shortest route for all clients,” Rabie added.

Commenting on the reasons behind raising the fees, Rabie said they come in light of the Authority’s efforts to stay up-to-date with all the market changes in the maritime transport sector that monitor the ever-increasing daily charter rates for most types of vessels that reached unprecedented levels, adding that the forecast for next year shows a continuation in this rise.

He cited examples in the daily charter rates for crude oil tankers which increased in average by 88% compared to the average rates of 2021, and an increase by 11% in the average daily charter rates of LNG carriers compared to that of 2021.

“Determining the Suez Canal transit tolls rests on a number of pillars, most significant of which is the average freight rates for various types of vessels.”

“This will be reflected in the high operational profits that will be achieved by navigational lines throughout 2023, in light of the continued impact of the disturbances in global supply chains and the congestion in ports world-wide, as well as the fact that shipping lines have secured long-term shipping contracts at very high rates.”

Rabie also pointed out to the impact the increased energy prices have on the equation of tolls calculation.

The continued increase in crude oil prices over $90 per barrel and the increase in the average LNG prices above $30 per million thermal units have led to a rise in the average prices of ships bunker, and consequently an increase in the savings ships achieve by transiting through the Suez Canal compared to other alternative routes.

He also stated that the increase is inevitable and a necessity in light of the current global inflation rates that reached more than 8%, which translates into increased operational costs and the costs of the navigational services provided in the Canal.

Rabie further explained that the Authority adopts a number of mechanisms with the sole aim of having its pricing policies cope with the changes in the maritime transport market and to ensure that the Canal remains the most efficient and least costly route compared to alternative routes.

The Authority does so by publishing a number of navigational circulars that allow for amending the pricing policies in case of any changes in the navigation market by offering incentives to vessels that operate on routes where the Suez Canal wouldn't normally achieve considerable savings, the statement noted.

These rebates may reach 75% of the Canal standard transit tolls for a specific period as per what the market dictates.

Rabies also pointed to the rebates granted through the Authority’s long haul committee that study each applying vessel's journey one at a time, which may reach 74% of the Canal standard transit tolls according to the conditions of the navigation market at the time the client applies for the rebate.

“This also applies to vessels that operate on routes where the Suez Canal wouldn't normally achieve considerable savings,” the statement explained.

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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
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The Future of Revenues in Syria: Challenges and Opportunities for the Interim Government

A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)
A money changer conducts a transaction in US dollars and Syrian pounds for a client on a street in Damascus (AFP)

Syria faces significant challenges as discussions intensify about the post-Bashar al-Assad era, particularly in securing the necessary revenues for the Syrian interim government to meet the country’s needs and ensure its sustainability. The widespread destruction of the economy and infrastructure poses a dual challenge: rebuilding the nation while stimulating economic activity and ensuring sufficient financial resources for governance.

Currently, the interim government relies heavily on international and regional support during the transitional phase. Donor countries are expected to provide financial and technical assistance to help rebuild institutions and alleviate the suffering of the Syrian people.

However, as the country transitions, external support alone will not suffice. The government must identify sustainable revenue sources, such as managing natural resources, imposing taxes, and encouraging foreign investments.

Opportunities from the Syrian Diaspora

The Syrian diaspora is seen as a significant economic resource, contributing through remittances or involvement in reconstruction projects. However, realizing these opportunities requires the establishment of strong, transparent institutions, effective resource management, and a clear strategic plan to rebuild trust with both local and international communities.

Securing revenues for the interim government is not merely a financial challenge but also a test of its ability to lead Syria toward stability and prosperity.

Securing Economic Resources

Nasser Zuhair, head of the Economic and Diplomatic Affairs Unit at the European Policy Organization, stated that the interim government, currently led by Mohammed al-Bashir, may replicate its revenue-generating models from Idlib. Resources in Idlib were drawn from temporary measures that are insufficient for sustaining a national economy like Syria’s.

In an interview with Asharq Al-Awsat, Zuhair explained that these resources included taxation, fuel trade with Syrian Democratic Forces (SDF)-controlled areas, international aid for displaced persons in Idlib, remittances from the Syrian diaspora, and cross-border trade facilitated by Turkiye.

“The interim government believes that sanctions relief is a matter of months, after which it can begin to establish a sustainable economy. For now, it will rely on the same resources and strategies used in Idlib and other controlled areas,” Zuhair added.

Challenges and Opportunities

Despite the former regime’s reliance on illicit revenues, such as drug trafficking and Captagon production—estimated to account for 25% of government revenues—the interim government has several potential avenues for generating revenue.

International Aid

Zuhair emphasized that cross-border humanitarian aid indirectly supports local economies. “The current government understands that international and regional aid will be substantial in the coming period, particularly for refugee repatriation and infrastructure development,” he noted.

He added that efforts to secure funding from the Brussels Conference, which allocates about $7 billion annually to support Syria, will be critical. Strengthening ties with regional and European countries, such as Saudi Arabia, Kuwait, Germany, and the UK, is also a priority. However, securing such aid depends on establishing a political framework where Hayat Tahrir al-Sham (HTS) does not dominate governance.

He further noted that international and regional support will likely remain a key revenue source for the interim government, including humanitarian and developmental aid from organizations such as the United Nations and the World Bank.

Taxes and Tariffs

Zuhair highlighted taxes and tariffs as essential components of the government’s revenue strategy. This includes taxing local economic activities, customs duties on cross-border trade, and fair taxes on merchants and industrialists in major cities like Damascus and Aleppo.

“The government can also impose income, corporate, and property taxes while improving border management to maximize revenue from customs and tariffs,” he added.

Agriculture and Natural Resources

Syria’s vast and fertile agricultural lands present an opportunity for revenue generation, Zuhair underlined, explaining that taxes on agricultural products could contribute to state income. However, this sector faces logistical challenges and high production costs. By directing the agricultural sector toward self-sufficiency, the government could reduce dependence on imports and create surplus revenue, he remarked.

Additionally, managing natural resources such as oil and gas could provide a significant revenue stream if the government gains control over resource-rich areas like northeastern Syria, the official noted.

Reconstruction

Reconstruction presents another potential revenue source. International companies could be encouraged to invest in rebuilding efforts in exchange for fees or taxes. Public-private partnerships with local and foreign firms in sectors such as infrastructure and housing could also generate significant funds.

Remittances from the Diaspora

Zuhair stressed the importance of remittances from Syrians abroad, estimating that these transfers could reach $2 billion annually by 2025. Encouraging the diaspora to send funds to support family members and rebuild properties will be a key priority for the government.

Domestic Investments

The interim government has shown its ability to attract domestic investments in real estate, industry, commerce, and agriculture, despite international sanctions. According to Zuhair, leveraging Türkiye as an international gateway, the government could expand this model across Syria, taking advantage of the challenging economic conditions left by the previous regime to draw reasonable investments in its first year.

Tourism and Small Businesses

Revitalizing the tourism sector could directly contribute to revenue, he added, noting that restoring historical and cultural sites, once security and stability are achieved, will attract visitors and generate income.

In addition, encouraging small and medium-sized enterprises will help revive the economy and create jobs, Zuhair emphasized, pointing that supporting manufacturing industries could provide a sustainable revenue stream.