In the sixth century B.C., Pharaoh Necho of Egypt ordered a canal to be dug from the Nile River to the Red Sea. Ships were forced to sail along the river on their way to Europe and India. In 1869, that ancient idea rekindled the opening of the Suez Canal. The artificial maritime canal is a two-way, north-to-south waterway which links the Mediterranean Sea to the Red Sea. It is the fastest crossing from the Atlantic Ocean to the Indian Ocean.
Increased use of the Suez Canal by U.S. East Coast ports is outpacing the costly expansion plans for the Panama Canal. Officials estimate it will cost $6 billion for dredging to accommodate the larger cargo ships in the Panama Canal.
Modernizing the canal?s infrastructure may result in increased canal charges that counter the savings gained by shorter sailing time.
Although sailing time from Asia to the East Coast is increased, the Suez Canal is less congested and costly than the Panama Canal.
The port of Baltimore is courting the Suez Canal in full swing.
In December 2006, the Maryland Port Administration signed a memorandum of understanding with the Suez Canal Authority. The agreement created a formal cooperation for information-sharing, designed to channel Helen Delich Bentley Port of Baltimore cargo shipments through the Suez.
“With the Panama Canal near capacity, the Suez Canal will play a much larger role for U.S. East Coast-bound goods coming from Asia and the Far East,” said MPA Director of Marketing Richard Powers. “This agreement shows our desire to have a good, close working relationship with the Suez Canal Authority as their importance to the East Coast supply chain grows.”
Signed by MPA Executive Director Brooks Royster and El-Sayed Zadaria El-Saaty, director of the Transit Department of the Suez Canal Authority, the MOU may elect to share business forecasting data and exchange information on training programs. Equally, the agreement allows for the Port and the Suez Canal Authority to undertake joint marketing efforts to generate new shipping business.
A longtime export analyst and consultant, Joseph R. Hughes? maritime-related articles have appeared in numerous publications. He is a native Baltimorean. E-mail your questions to him at [email protected].
