The Suez Canal, a crucial artery for global trade, is set to resume full operations after a period of instability in the Red Sea and Bab al-Mandab regions. Major shipping lines are gradually returning to the route, signaling the restoration of stability. This announcement followed a key meeting between Admiral Ossama Rabiee, Chairman of the Suez Canal Authority (SCA), and Mr. Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO), held at the SCA headquarters in Ismailia on Tuesday.

Adm. Rabiee confirmed that the canal is ready to operate at full capacity, welcoming the return of global shipping. The Chairman noted that several major shipping lines, including CMA CGM, have already resumed operations through the canal, with vessels scheduled to transit starting January 23. This is seen as a positive sign for the canal’s role in facilitating international trade, which had been disrupted in recent months due to heightened tensions in the Red Sea region.

In the first quarter of the 2024/2025 fiscal year, the canal experienced a sharp decline in traffic, with the number of vessels transiting the route falling by 51%. As a result, transit revenues dropped by a staggering 61.2%, amounting to $931.2 million compared to $2.4 billion during the same period in the previous year. This decline was part of a broader trend in 2024, when overall revenues from the Suez Canal plummeted by 60.7%, from $10.2 billion in 2023 to just $4 billion in 2024. The number of vessels passing through the canal also saw a near 50% drop, from 26,400 vessels in 2023 to around 13,200 in 2024.

Despite these challenges, Adm. Rabiee reassured stakeholders that the SCA has been proactive in enhancing its services and infrastructure. He highlighted the introduction of new services to meet the evolving needs of the maritime industry, such as ship repair and maintenance, marine ambulance services, fueling, waste collection, and crew change facilities. These improvements aim to ensure that the Suez Canal remains a reliable and efficient transit route for global trade.

In addition to these services, the SCA has focused on boosting the canal’s safety and capacity. Investments in infrastructure will increase the canal’s capacity by 6-8 vessels, improving its ability to handle larger volumes of traffic. The expansion project in the Small Bitter Lakes is also progressing, with the operational phase set to begin in early 2025 following the completion of updated navigational charts by the Egyptian Navy’s Hydrographic Division.

Adm. Rabiee also emphasized the SCA’s commitment to sustainability through the “Green Suez Canal” initiative. This initiative aims to reduce the environmental impact of maritime operations by introducing eco-friendly marine units, converting vessels to operate on biofuels, and introducing clean energy solutions at pilot stations along the canal. The authority has already introduced 27 aluminium pilot boats to assist with pilot boarding and disembarking, and 29 multipurpose tugboats are currently under construction, with several already completed. Additionally, the construction of rescue tugboats with a bollard pull capacity of up to 190 tons is underway, further enhancing the canal’s operational capabilities.

Mr. Dominguez, the IMO Secretary-General, praised the SCA for its continued advancements in navigational safety and environmental sustainability. He also recognized the SCA’s efforts in improving operational efficiency, particularly through its focus on enhancing port safety and reducing environmental impact.

The SCA has set an ambitious target of generating $9 billion in revenue for the 2024/2025 fiscal year, and with the return of stability in the region, the Suez Canal is expected to regain its pivotal role as a central hub for global maritime trade. The meeting between the SCA and IMO also included a visit to the Suez Canal’s Navigation Control Center and the Maritime Training and Simulation Academy, where Mr. Dominguez reviewed the progress of various initiatives aimed at enhancing maritime safety and environmental sustainability.