Egypt to hike Suez canal fees in 2006
(AFP)
Updated: 2005-12-15 09:12

Egypt will increase transit fees by three percent next year for ships using the Suez Canal, which generated record revenues in 2005, Suez Canal Authority Chairman Ahmed Ali Fadel said.

Canal tolls were also raised by three percent in 2005.

Around 18,700 ships carrying 665 million tons of goods are expected to generate record revenues of 3.420 billion dollars in 2005, up from 3.275 billion in 2004, Fadel told reporters.

The 100-mile (160-kilometre) canal connects the Mediterranean to the Red Sea and separates mainland Egypt from the Sinai peninsula.

The canal authority has decided to deepen the canal to 66 feet (20 metres) by the end of 2006 in a bid to attract more and larger cargo ships.

A project is being studied for further deepening the canal to reach a 72-feet draught accomodating even larger ships of up to 350,000 tonnes.

Booming trade with Asian economic giants India and China has increased traffic. Experts have predicted that increased tolls needed to finance the expansion of the Panama Canal could further affect global trading routes in favour the Suez Canal.