Increased security measures at the Suez Canal coincided with a decision to raise fees for the second year in a row, reports Amirah Ibrahim Fees for ships using the Suez Canal will go up by three per cent next year, Suez Canal Authority Chairman Ahmed Fadel announced this week. The canal's fees also went up by three per cent in 2005, the first increase in nine years. Fadel said the price hike would take effect in March 2006, to provide ship owners and operators with enough time to manage their business in accordance with the new rates. The canal brought in $3.42 billion in revenues in 2005, up from $3.28 billion in 2004. The 12 per cent growth rate, Fadel said, was catalysed by a rise in crude oil prices combined with industrial nations' constant demand for oil. Booming trade with Asian economic giants India and China also played a role. The revenues are the highest ever in the canal's history. Canal authorities have always been cautious about raising fees. According to Fadel, the increase was only decided upon after a comprehensive study of world trade movement, and the amount of goods transferred by sea to different markets, took place. The study outlined procedures related to the ship building industry, as well as the effects of international finance deals on maritime fees. It also took into account the operational costs of different sizes and classes of ships using the canal and other alternative routes. Around 18,700 ships carrying 665 million tonnes of goods used the canal in 2005, compared to 16,850 ships carrying 121 million tonnes in 2004. Fifty-two per cent of those ships were loaded with containers, while most of the remainder was split between oil (22 per cent) and drain tankers (18 per cent). The 160-kilometre canal connects the Mediterranean to the Red Sea, and separates mainland Egypt from the Sinai Peninsula. It was inaugurated in 1869. In the mid 1990s, facing stiff competition from roads, railways and oil pipelines, authorities chose to keep fees stable in the hope of retaining customers, and attracting new ones. At the same time, several projects were initiated to boost the canal's functionality. One will deepen the canal to 66 feet by the end of 2006 in a bid to attract larger cargo ships. A subsequent scheme will further deepen the canal to 72 feet so that it can accommodate 350,000-tonne ships. The government is also planning to construct a new tunnel under the canal, to better connect Sinai with Egypt's delta cities. Six Egyptian and international banks have expressed interest in funding the project, which is still being studied in coordination with the Suez Canal Authority. Currently, Sinai is linked to the Delta via one tunnel and two bridges (one for vehicles, and one for railways). The canal was also in the news this week after reports claimed that Al-Qaeda was targeting the waterway. Fadel said the canal was absolutely safe, controlled and secured by bodies like the Interior Ministry and the Navy, as well as intelligence authorities. Two weeks ago, the Israeli Navy said it had stopped using the canal out of concern that global militants were planning to target it. "We don't want to draw terror," a senior naval officer told the Jerusalem Post. The report said the decision had no strategic significance for Israel, because its navy rarely used the canal in any case. A few days later, the United States approved the transfer of surplus naval vessels to Egypt and other allies in the Middle East. An official statement said that two minesweepers were being sent to help Egypt secure the canal, which serves as a major route for US military vessels. "The vessel, armed with two .50 caliber machine guns and high-definition variable-depth sonar, was designed to survive the shock of underwater explosions. The ship also contains an unmanned submarine used to neutralise mines," the statement said. Sources at the canal told Al-Ahram Weekly that the authority had received warnings through Egypt's embassy in Denmark about Al-Qaeda's plans to carry out terrorist attacks targeting ships passing through the waterway. "According to those warnings, the targeted ships would be oil tankers, which are fast burning and would cause serious damage to the canal, and potentially lead to a temporary closure of a vital global waterway," the source said. At the behest of security authorities, the canal's administration is currently compiling detailed information about the oil tankers scheduled to be using the canal in the near future, in order to better secure them. Some increased security measures are already in place. "Naval units, in addition to the canal units, accompany the ships that pass through," said the source, who requested anonymity. A road running along one of the canal's banks, used mainly by army and security bodies, has also been heavily secured.
