Suez Canal: A Maritime Hub and Pillar of the Global Economy

Suez Canal: A Journey Through History

Historians suggest that Pharaoh Senausert III was the first to envision a link between the Red Sea and the Mediterranean. However, the journey of the Suez Canal truly began with the First Concession, paving the way for subsequent concessions that ultimately led to the groundbreaking on April 25, 1859, in what is now known as Port Said (formerly “Al-Farama”). Around 20,000 Egyptians participated in this ambitious project, enduring challenging conditions. Since its grand opening on November 17, 1869, the Canal has been a witness to significant historical events and transformations. Notable moments include its nationalization, which brought much-needed order, and the disruption following the 1967 war that led to its closure, followed by its reopening in June 1975. Below are some key highlights of these pivotal occurrences

Suez Canal: Concept and Early Developments

Historically, it’s recognized that the initial vision for linking the Red Sea to the Mediterranean through the Nile and its tributaries originated with the Egyptian Pharaoh Senausert III during the Twelfth Dynasty. This ambitious project aimed to enhance trade and improve communication between East and West, allowing ships from the Mediterranean to navigate the Nile to Zagazig and then reach the Red Sea via the Bitter Lakes, which were interconnected at that time. Today, traces of that ancient canal can still be found near Geneva, close to the city of Suez.

Re-digging the Canal (610 B.C.):

In 610 B.C., the Canal fell victim to sand accumulation, leading to the formation of a dam that effectively isolated the Bitter Lakes from the Red Sea. This unfortunate neglect left the Bitter Lakes without the necessary maintenance for an extended period. Necho II, also known as Nekós, made earnest efforts to re-establish the Canal, successfully connecting the Bitter Lakes to the Nile. However, he was unable to link them to the Red Sea. Nearly a century later, in 510 B.C., Darius I took a renewed interest in the Canal, reconnecting the Bitter Lakes and the Nile. Like his predecessor, he struggled to connect the Bitter Lakes to the Red Sea, managing only minor canals that were navigable solely during the Nile’s flood season.

By 285 B.C., Ptolemy II faced and overcame numerous challenges that had thwarted earlier attempts. He effectively restored navigation throughout the Canal by successfully excavating the section between the Red Sea and the Bitter Lakes, replacing the previously unusable minor canals. Fast forward to the reign of Roman Emperor Trajan around 98 A.D., there was a renewed demand for the Canal to facilitate trade, prompting him to undertake a re-digging project. This effort began in Cairo at the bay mouth and extended to El-Abbasa, where it connected with the old Nile branch in Zagazig.

However, around 400 A.D., the Byzantines neglected the Canal entirely, allowing it to become impassable due to sand buildup. It wasn’t until 641 A.D. that Amr Ibn El-A’as took the initiative to reopen the Canal for navigation, renaming it the Amir El-Mo’menin Canal. His original ambition was to create a direct link between the two seas, but this plan was thwarted by Caliph Omar Ibn El-Khattab, who feared that water from the Red Sea could inundate all of Egypt.

The Canal’s story

took another turn in 760 A.D., when Abbasid Caliph Abu Jafar El-Mansur ordered the Canal to be filled with sand to hinder trade routes to Mecca and Medina, as those cities had rebelled against his authority. This marked the end of direct navigation between the two seas for approximately eleven centuries, during which land routes became the primary means of transporting Egyptian trade.

It wasn’t until 1820 that Mohammad Ali Pasha issued orders to repair sections of the Canal to serve irrigation needs between El-Abbasa and El-Qassasin.

The Canal’s story in 760

Suez Canal: From 1854 Concession to 1869 Inauguration Ceremony

The story of the Suez Canal begins with its first concession in 1854, paving the way for subsequent agreements. This journey culminated in the groundbreaking work that led to the completion of the canal’s excavation on August 18, 1869, followed by a grand inauguration ceremony on November 17, 1869.

The First Concession:

On November 30, 1854, the first concession was granted to Ferdinand de Lesseps, allowing him to form a company dedicated to constructing the Suez Canal. The initial article mandated that de Lesseps would establish and oversee the company’s operations. Following this, the second article indicated that the president of the company would be appointed by the Egyptian government. The third article outlined the concession’s duration as ninety-nine years, commencing from the Canal’s inauguration, while the fifth article ensured that the Egyptian government would receive 15% of the company’s annual net profits. Additionally, the concession required that any transit fees be agreed upon by both the Khedive and the company, with an assurance that all nations would be treated equally without bias. Furthermore, the concession stipulated that upon its expiration, the Egyptian government would assume control of the waterway and any associated structures.

The Second Concession:

On January 5, 1856, the second concession was enacted, consisting of 23 articles that elaborated on the original provisions. Notably, Articles 14 and 15 emphasize the neutrality of the Canal. Article 14 states that “the great maritime canal from Suez to Tina and the ports belonging to it shall be open forever, as neutral passages, to every merchant vessel.

The Second Concession

The Creation of the Universal Company of the Maritime Canal of Suez:

On December 5th, 1858, the Universal Company of the Maritime Canal of Suez was formed with a substantial capital of 200 million Francs (equivalent to 8 million Egyptian Pounds). This capital was distributed among 400,000 shares, each priced at 500 Francs. Initially, Egypt held 92136 shares, while a combined total of 85506 shares was set aside for Britain, the United States, Austria, and Russia; however, these nations declined to participate in the public offering. Consequently, Egypt took on a significant loan of 28 million Francs (1120000 Egyptian Pounds) at a steep interest rate to acquire those unclaimed shares, driven by de Lesseps’ advocacy and a sincere wish for the project’s success. Ultimately, this led to Egypt’s ownership of 177642 shares, amounting to roughly 89 million Francs (3560000 Egyptian Pounds), which represented about half of the Company’s total capital.

The Start of the Groundbreaking Journey:

On April 25th, 1859, the digging commenced, braving the objections from Britain and the Ottoman Empire. By November 18th, 1862, water began to flow into Lake Timsah, transforming it from a mere depression surrounded by sand dunes into a vital connection between Port Said and Suez. The long-awaited moment occurred on August 18th, 1869, when the waters of the two seas finally met, concluding a decade of hard work and forging an essential pathway for global navigation. A staggering 74 million cubic meters of soil were excavated, and the total execution cost soared to 433 million Francs (17320000 Egyptian Pounds), which was double the initial estimate.

The Start of the Groundbreaking Journey:

On April 25th, 1859, the digging commenced, braving the objections from Britain and the Ottoman Empire. By November 18th, 1862, water began to flow into Lake Timsah, transforming it from a mere depression surrounded by sand dunes into a vital connection between Port Said and Suez. The long-awaited moment occurred on August 18th, 1869, when the waters of the two seas finally met, concluding a decade of hard work and forging an essential pathway for global navigation. A staggering 74 million cubic meters of soil were excavated, and the total execution cost soared to 433 million Francs (17320000 Egyptian Pounds), which was double the initial estimate.

The digging started on April 25th, 1859 despite objections from Britain and the Ottoman Empire. Water flowed into Lake Timsah on November 18th, 1862, and the lake was then a depression surrounded by sand dunes midway between Port Said and Suez. Water of the two seas met on August 18th, 1869 putting an end to 10 years of toil and creating an invaluable artery for world navigation. 74 million m3 of soil was dug out, and the execution cost reached 433 million Francs (17320000 Egyptian Pounds); which was double the cost calculated initially.

The Legendary Inauguration Ceremony (November 17th, 1869):

On August 18th, 1869, the waters of two seas converged, marking the birth of the Suez Canal—a vital lifeline not only for Egypt but for the entire globe. This remarkable waterway has been referred to by the esteemed geographer, Dr. Gamal Hemdan, as “the pulse of Egypt.” The grand inauguration ceremony on November 17th, 1869, attracted around six thousand guests, among whom were notable dignitaries like Empress Eugenie of France, wife of Emperor Napoleon III, the Emperor of Austria, the King of Hungary, and the Crown Prince of Prussia. They were joined by several other influential figures, including the British Ambassador in Istanbul, Emir Abdelkader El-Djazairi, Crown Prince of Egypt Tawfiq, the famed playwright Henrik Ibsen, and Nubar Pasha.

On that historic day, a procession of ships, led by the L’Aigle, made its way through the newly opened canal, showcasing the significance of the moment. This impressive fleet comprised 78 vessels, including 50 warships, a testament to the scale of the event. The extraordinary festivities for the inauguration ran the Khedive Ismail about one and a half million Egyptian Pounds, marking a milestone in both Egyptian and global history.

The Years Following the Inauguration until the Constantinople Convention:

On February 15, 1875, British Prime Minister Benjamin Disraeli acquired 176602 shares from Khedive Ismail for a total of £3,976,580. This stock represented 44% of the shares, which in turn granted Egypt 31% of the Company’s total profits.

At that time, the Egyptian government also relinquished its claim to 15% of the Company’s annual net profit in favor of the Crédit Foncier de France, for a sum of 22 million Francs. Consequently, control of the Company was effectively in the hands of France, which owned 56% of the shares, while Britain held the remaining 44%.

Between May and September of 1882, Britain successfully occupied Egypt following the Urabi Revolt, taking control of the Company’s facilities and halting its operations for a time.

On January 3, 1883, Lord Grandfield issued a statement to the major powers, announcing the British government’s willingness to withdraw its military presence from Egypt as soon as the local conditions permitted. He suggested establishing a framework for the Suez Canal through an agreement among the major powers.

Later, on March 30, 1885, an international committee convened in Paris to draft a document aimed at guaranteeing freedom of navigation in the Canal for all nations at all times; however, they were unable to reach a consensus on the matter.

The Constantinople Convention (October 29th, 1888):

An agreement was made between France, Austria, Hungary, Spain, Britain, Italy, the Netherlands, Russia and Turkey to draw a final system that ensures freedom of navigation through the Suez Canal.

In relation to the matter of Egypt’s honoring the Constantinople Convention, it has sent a letter on July 17th, 1957 to the International Court of Justice, informing it that Egypt has recognized the Court’s compulsory jurisdiction in accordance with the provisions of Article 36 of the statute of the Court for all disputes relating to transit through the Suez Canal.

Nationalization of the Canal… Rights Restored:

On July 6, 1956, President Gamal Abdel Nasser delivered a pivotal speech in Alexandria, announcing the nationalization of the Suez Canal. The decree’s first article stated, “The Universal Company of the Suez Maritime Canal (Egyptian joint-stock company) is hereby nationalized. All its assets, rights, and obligations are transferred to the Nation, and all organizations and committees currently managing it are dissolved. Shareholders and holders of founder shares will be compensated based on the value of their shares reflected in the closing quotations of the Paris Stock Exchange the day before this law takes effect. Payment will occur once the Nation takes possessi

A turning point in the history of SUEZ Canal and a change in the course of events

Egypt met all obligations by January 1, 1963, having paid all compensation to stakeholders for their establishment quotas and shares, calculated at the closing rate on the day prior to nationalization. The total compensation amounted to L.E 28300000, covering 800000 shares, all settled in foreign currency before the one-year maturity mark .

The decree emerged as a firm response to the stance taken by major countries and the World Bank regarding financing the High Dam . However, it also underscored Egypt’s rights and sovereignty over its national territory following the Revolution on July 23.

Egypt strongly defended the nationalization decree, as demonstrated in a renowned speech by Dr. Mahmoud Fawzi, Egypt’s Foreign Minister, at the United Nations General Assembly on October 8, 1956. He declared that “Every independent state has the right to nationalize entities under its sovereignty.” He referenced General Assembly resolution no 12626 from December 23, 1952, affirming that each state has the authority to utilize its resources for the benefit of its people, in line with its sovereignty and the principles of the UN Charter. Thus, Egypt’s move to nationalize the Suez Canal Company was a rightful implementation of this resolution.

Nationalization and Resilience: Egypt’s Triumph in the Suez Canal Crisis

He explained that the Canal Authority is an entity established by the Egyptian government, which granted it 99 years of construction privileges. According to Article 16 of the agreement signed on February 22, 1866. The International Navigation Authority of the Suez Canal operates as an Egyptian joint-stock company, subject to national laws. The British government has recognized this arrangement and supported it in mixed court proceedings on April 12, 1939. He also emphasized that Egypt is committed. To its sovereignty over its territory, acknowledges the 1888 agreement. And is open to negotiations aimed at peacefully resolving the issues surrounding the canal.

Following the nationalization of the Canal, Egypt faced aggressive colonial attacks that aimed to cripple. Its economy by withdrawing foreign pilots and technicians. This maneuver was intended to disrupt operations and create difficulties for the Egyptian government, as it was believed Egyptians would struggle to manage the canal independently.

However, the resilience of the Egyptian spirit shone through during this crisis. With the assistance of pilots from friendly nations, Egyptian pilots quickly adapted and resumed navigation just two days after the. Withdrawal of foreign personnel. On September 16, 36 ships successfully transited the canal; the. Following days saw 35 ships on September 17, 32 on September 18, and 34 on September 19.

From Global Validation to Colonial Aggression: Egypt’s Path to Victory

On September 18, 1956, the SIS organized a visit for 50 foreign journalists to Ismailia, where they had the opportunity to observe the Canal Zone firsthand and assess the navigation accuracy. The following day. September 19, 1956, Al-Ahram newspaper’s main headlines highlighted the impressed foreign correspondents and the smooth passage of ship convoys. Numerous international publications celebrated the effective management of canal navigation by the Egyptian administration. Notably, the American. Magazine “Times” featured an article titled “Under the New Administration” on October 1, 1956, reflecting on the situation eight weeks after the canal’s nationalization and just a week after two-thirds of the. Foreign pilots had withdrawn. This moment appeared to validate Nasser’s confidence. As 2,432 ships navigated the canal safely, including 301 vessels that passed through following the mass exit of the. Foreign pilots.

However, events soon escalated into the Tripartite Aggression against Egypt, which spanned from. October 31 to December 22, 1956, resulting in the canal’s closure.

Despite this aggression leading to the channel’s shutdown, Egypt and the canal remained steadfast in. Their struggle against occupation, ultimately contributing to a broader liberation movement that marked. The end of colonial rule worldwide. This culminated in the victory on December 23, 1956, now remembered as the glorious Suez War.

The victorious spirit soon enabled navigation to resume in the Canal on March 29, 1957, after the removal. Of sunken ships cleared the waterway.

Projects of the Canal Following the Tripartite Aggression:

After the reopening of the canal on March 29, 1957, the canal company initiated the first phase of the. Nasser project, aimed at expanding the waterway dimensions from 1250 m² to 1800 m² and increasing. The ship draft from 35 feet to 37 feet. By 1958, a fleet of dredges had arrived, featuring the notable suckers named “15 September” and “26 July.”

a. Implementation of the 1st Phase of the “Nasser Project:

By 1961, the development was advancing rapidly. The first phase was completed by April 30, 1961, and the second phase followed, concluding on September 1, 1961. In December of the same year, the cornerstone was ceremonially laid for the Suez Canal Authority’s arsenal.

b. Passage of the Giant Carriers:

On March 13, 1962, history was made when the world’s largest tanker, the “Manhattan,” successfully transited the canal. This American vessel boasts a maximum load of 106500 tons, measures 286.7 meters. In length, has a width of 40.2 meters, and features a maximum draft of 15.05 meters. Standing as tall as a ten-story building.

Since the nationalization of the canal, several monumental tankers have made their way through:

• On May 8, 1966, the British tanker “British Admiral” passed through with a maximum load of 111274 tons.
• On July 17, 1966, the British tanker “British Argosy” followed, carrying a maximum load of 112786 tons.
• Just ten days later, on July 27, 1966, the Swedish tanker “Sea Spirit” transited with a maximum load. Of 119400 tons.
• Lastly, on November 6, 1966, the Swedish tanker “Sea Spray” made its passage with a maximum load of 116250 tons.

Transit of Giant Ships:

On October 8, 1962. The Suez Canal Authority (SCA) proudly marked the transit of its “100 thousandth. Vessel since the nationalization on July 26, 1956, under the leadership of the late President Gamal Abdel Nasser. This milestone vessel was the Norwegian oil tanker “Borg Hess,” constructed in Stavanger, Norway, in 1955. It measured 194 meters in length, 26 meters in width, had a draft of 14 meters, and. Boasted an impressive total capacity of approximately 20990 tons.

On April 14, 1964, the new dredger “Khufu,” built in Scotland, enhanced the SCA dredger fleet. Similar to others like “July 26th,” “September 15th,” and “Thutmose,” “Khufu” stood out due to its larger size and. Superior power of 8,500 horsepower. Its capabilities included dredging through rocky soil to a depth of 21 meters. As well as suctioning and discharging soil through pipelines extending up to 3.5 kilometers. With an investment of L.E. 1.5 million.

The Transit of Birghaven:

On October 27th, 1966, the Norwegian oil tanker “Birghaven” transited the Canal. Its maximum capacity was 153511 tons, its length was 278.9 m., and its width was 44.2 m. It was the largest ship to transit at the time since the Canal’s inauguration. And it was permitted to transit after a number of successful trials were carried out using a scale model at the SCA Research Center in Ismailia.

The Re-opening of the Suez Canal (June 5th, 1975):

On June 5th, 1975, a significant milestone was reached with the re-opening of the Suez Canal. Navigation had been halted since the Israeli conflict began on June 5th, 1967. But this changed when President Anwar El-Sadat announced the Canal’s re-opening. During a momentous speech to the People’s Assembly on March 29th, 1975, he emphasized. I do not want the peoples of the world to think that the Egyptian people intend to hold them accountable for a fault they did not commit. They have been our supporters, and we desire our Canal to serve as they do—a route toward prosperity. We are reopening the Canal with the capability of protecting it, just as we are rebuilding the Canal cities. The era when distance could impede aggression is over.

A Canal Reopened: Sadat Leads Symbolic Voyage for Peace and Prosperity

On that historic day, the Suez Canal was opened once again to international navigation. In his speech that followed, President Sadat paid tribute to those who had contributed to the Canal’s existence, stating. The son of this good land. Who dug the Canal with sweat and tears—the Canal that connects continents and. Civilizations—crossed it alongside the spirits of loyal martyrs to bring peace and security to its banks. Now, he reopens it for navigation, just as it was created: as a branch for peace and a vital artery for. Prosperity and cooperation among the peoples of the world.

President Sadat then boarded the destroyer “6th of October” to lead the first transit through the Suez Canal, accompanied by a convoy that included two minesweepers, the destroyer “6th of October,” the yacht “Freedom,” the command ship of the 6th fleet “Little Rock,” and two Egyptian vessels, “Syria” and “Aida,” along with military launches and the tugboat “Mared.” The convoy concluded its journey with three naval ships and the Qatari vessel “Ghazal.” Upon reaching Ismailia, President Sadat honored the occasion by unveiling a memorial plaque at the entrance of Al-Irshad building.

Expanding and Deepening the Waterway

When the canal first opened for navigation on November 17, 1969. It measured 164 km in length, 52 meters wide at the water level. And 75 meters deep. Initially, vessels were allowed a draft of no more than 22.5 feet. And navigation was limited to daylight hours for 18 years until nighttime navigation was authorized on March 1, 1987.

From the opening of the Suez Canal until its nationalization in 1956. Various development programs were implemented to enhance and improve the waterway. These efforts increased the canal’s depth to 13.5 meters and widened it from 22 meters to 42 meters. The water cross-section grew from 304 m² to 1,250 m². While the maximum allowed draft increased from 2.4 feet to 35 feet. The total expenditure for these improvements amounted to 20 million and 500 thousand Egyptian pounds.

As the shipbuilding industry advanced, the demand for a deeper Suez Canal became evident. The support from the relevant authorities facilitated enhancements that allowed ship drafts to reach 35 feet. With the water sector measuring 1,200 m² by the time of nationalization on July 20, 1956.

Development continued until May 1952, with the ship draft rising to 38 feet and the water sector. Expanding to 1,800 m². In June 1966, the canal administration announced an ambitious two-phase project . Aimed at further increasing the ship draft to between 48 and 58 feet.

From Closure to Expansion: The Modern Development of the Suez Canal (1967–2010)

However, the progress was halted due to the war in June 1967. The canal remained closed until June 1975 when it reopened for international navigation. After extensive clearance operations to remove debris and. Sunken vessels leftover from the conflicts between 1967 and 1973. Unfortunately, the canal’s depth and water sector remained unchanged from before the closure.

The Egyptian authorities continued to develop the canal until, by 2001. The permitted ship load reached 210,000 tons, with a draft of 191.80 km being established. This project included redesigning the canal’s curves to ensure the radius of each path was at least 5,000 meters. Additionally, a new bypass was excavated, stretching from km 17 south of Port Said to the Mediterranean east of Port Fouad.

This improvement allows ships traveling north to access the sea without entering the harbor of Port Said. By 2010, the permitted draft for transit through the canal reached 6 feet, accommodating all container ships. Including those capable of carrying 17000 containers. Along with vessels from across the globe.

Evergreen ship ran aground in the Suez Canal

In March 2021, the world observed an unprecedented event when the colossal Ever Green container ship. Managed by Evergreen, became lodged in the Suez Canal. Bringing one of the globe’s key maritime routes to a complete halt. As concern spread and pressure increased. Many experts and nations concluded that the only practical solution was to offload the ship’s substantial cargo—a task that would take weeks and require significant resources. However, the Egyptian engineering team envisioned a different approach.

They contended that unloading would only prolong the situation and instead put forward a more innovative and bold plan. Displaying exceptional coordination, the team employed powerful dredgers, tugboats, and meticulous calculations, leveraging tidal variations to refloat the ship. In an astonishing six days—a record-setting duration—they managed to guide the vessel back on its way. This remarkable achievement not only circumvented a potential global crisis but also highlighted the skill, perseverance. And creativity of the Egyptian engineers who chose to pave their own way rather than conform to the norm.

NEW BRACH FOR SUEZ CANAL

The New Suez Canal, opened in August 2015, stands as one of Egypt’s most significant and. Transformative infrastructure undertakings of the 21st century. Completed in just one year under the supervision of the Suez Canal Authority and fueled by national investment. This 35-kilometer extension. Runs alongside the original canal, enhancing it with an additional 37 kilometers of widening and deepening. The new branch was engineered to facilitate two-way shipping traffic. Cutting down waiting times significantly from 18 to about 11 hours and effectively. Nearly doubling the daily capacity for vessels transiting through.

Equipped with state-of-the-art navigation and safety systems, this project not only enhances operational. Efficiency but also positions Egypt as a vital player in global trade. The New Suez Canal generates substantial economic opportunities. Notably through the Suez Canal Economic Zone (SCZone). Designed to attract international investment with its ports, logistics hubs, and industrial parks. This remarkable engineering feat showcases both strategic vision and a national. Dedication to invigorating Egypt’s economy while modernizing one of the world’s key maritime routes.

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