Adm. Ossama Rabiee, Chairman and Managing Director of the Suez Canal Authority, has held a meeting with representatives of 23 major shipping lines and agencies that was attended by Chairmen of the Suez, Port Said and Alexandria Chambers of Shipping to discuss the impact of the return of relative stability in the Red Sea and Bab El-Mandab region on navigation schemes and schedules in the Suez Canal within the upcoming period. The meeting was held at the SCA's headquarters, Al-Irshad Building, at the city of Ismailia.
In his speech, H.E. has emphasized the SCA's keenness on a direct and active communication with all its clients to hold discussions and exchange viewpoints on developments of the situation in the Red Sea and Bab El-Mandab region. H.E. has also expressed his high esteem for the invaluable role played by shipping agencies as a main linking point and partners in success towards achieving mutual interests.
H.E., the Chairman, has explained that the current situation in the Red Sea region is witnessing positive indicators that show stability returning to the region making it the perfect opportunity to take executive measures aimed at modifying navigational schedules to pave the way for the return of maritime navigation back to its normal course.
Adm. Rabiee has sent a message of reassurance to the maritime community that the circumstance are ripe for the return of maritime navigation in the Red Sea region once again, announcing the Suez Canal's readiness to operate at full capacity to receive the various navigational services of major shipping lines. H.E. has also expressed his understanding of the security concerns of the shipping companies and shipping lines and their keenness on maintaining the navigational safety of vessels and crew.
H.E. Adm. Rabiee stressed that the Suez Canal has not stopped providing its maritime and logistical services since the beginning of the crisis, but rather has taken many measures to mitigate its repercussions on its clients and to meet the evolving requirements of the current stage by introducing a package of new navigational services which were not available before— such as providing maritime salvage services, water ambulance services, pollution control, ship maintenance and repair, and bunkering services.
H.E. added that the measures extended beyond this point, the Authority was keen on keeping its flexiblity by maintaining its pre-crisis transit pricing policies for all types of vessels, and extending the implementation of its rebate circulars to emphasize the Canal's support to shipping industry.
The Chairman of the Authority pointed out that the Suez Canal continued implementing its ambitious plans to develop the navigational waterway of the Canal despite the various challenges; H.E. announced in this regard that the Southern Sector Development Project has been completed and is set to commence its actual operation during the upcoming period.
Adm. Rabiee has also stressed the great importance of the Southern Sector Development Project in its two parts and the numerous navigational advantages it shall provide - such as increasing the margin of navigational safety and reducing the impact of water and air currents after expanding the Canal by 40 meters to the east, and increasing the depth from 66 feet to 72 feet within the scope of the canal expansion project, from km 132 (canal marking) to km 162 (canal marking). Moreover, the Canal duplication project increases the canal's accommodation capacity by an average of 6 - 8 vessels per day. Additionally, the length of the New Suez Canal is extended from 72 to 82 kilometers.
The Admiral has reviewed the negative impacts of the Red Sea crisis on the Canal's navigation statistics, which were severely affected in light of the security concerns and the tendency of many shipping lines to reroute around the Cape of Good Hope despite the high costs of maritime transportation in this route and its lack of navigational services, as well as the increase in environmental risks.
On his part, Mr. Bahaa Badr, Chairman, Arabian Gulf Marine Trading Co. (agent of EVERGREEN LINE) expressed his appreciation of the efforts exerted by the Authority whether in terms of developing the navigational waterway of the Canal or introducing a new package of navigational and logistical services, which shall have a positive impact on encouraging major shipping lines to transit through the Suez Canal.
Rear Admiral Ehab Elbanan, chairman of Clarksons Company, stressed the importance of ongoing communication with all shipping lines and actors in the maritime community. He also suggested studying the possibility of introducing temporary incentives to encourage vessels to transit through the Canal.
On his part, Mr. Hany El-Nady, Maersk Group Representative in MENA, has affirmed the keenness of the Group on resuming transiting through the Suez Canal once more, and that it monitors closely the positive indicators of the situation in the Red Sea region as well as its readiness to resume transit through the Canal once again immediately upon the situation fully stabilizes.
Whereas, Capt. Mohammed Badawi, Managing Director of Gulf Agency Company, has stressed the importance of holding such meetings periodically and expressed his support for the proposal of granting temporary incentives to certain types of vessels.
As for Mr. Tariq Zaghloul, CEO of CMA CGM Egypt and Sudan Cluster, he has emphasized the strategic importance of the Suez Canal to the French group as a major strategic partner, pointing out that Canal witnesses the transit of some vessels which affiliated to the Group on a daily basis. He has also expressed the shipping line's anticipation of the persistence of stability in the Red Sea region to make the decision of bringing back all its various navigational services consecutively.
While Mr. Ehab Fathy, representative of the shipping line MSC, has touched on the maintenance and repair services provided by the SCA through its shipyards and affiliated companies, highlighting that Port Said Shipyard has received two of the Group's vessels to execute maintenance and repair works.
On his part, Mr. Mohamed Moselhy, Chairman of the Alexandria Chamber of Shipping, lauded the efforts exerted by the SCA to communicate continuously and effectively with shipping lines and send messages of reassurance that should encourage bringing navigation in the region and in the Suez Canal back to normal.
In the same context, Mr. Adel Ellameey, Chairman of Port Said Chamber of Shipping, has stressed the importance of communicating with insurance companies so that they can reassess the region and classify it as a safe zone for transit, which would enable ships to resume transiting through the region once again.
Similarly, Rear Admiral Abdel Qader Gaballah, Chairman of the Suez Chamber of Shipping, has expressed his hope that the coming days will witness a real breakthrough towards the return of navigation to the region consecutively and gradually, stressing the role to be borne by shipping agencies as a major mediator conveying the true picture of the current situation in the region to shipping companies and shipping lines.
Mr. Mamdouh Taha, CEO of COSCO Shipping Agency, confirmed that the return of major shipping lines to transiting through the Suez Canal once again is inevitable as the maritime comunity is looking forward to the persistence of stability in the region.
Moreover, Mr. Mahmoud El Kady, Business Development Manager at Kadmar Shipping, has pointed out that yacht tourism in the Canal is witnessing a boom in light of the great development in services provided by the SCA in this field.
In the same context, Ms. Amany Helmy, General Manager of Dominion Shipping Agencies in Egypt, has called for increasing the incentives granted to encourage yachts and cruise ships to transit through the Canal.
While Mr. Ahmed Al-Masry, representative of Medlevant Shipping Agency, has called for paying more attention to services provided to crews of the Canal-transiting vessels.
Capt. Mohamed El Boraey, representative of GLOBAL LOGISTICS Agency, has stressed the importance of focusing on attracting all types of vessels and not to be confined to large containerships alone.
The reunion witnessed as well the participation of representatives of ONE shipping line and other shipping lines such as INCHAPE, CONSULT, REDMAR, LETH, SPHINX and LPH.
The meeting has also witnessed a consensus on the necessity of holding these meetings periodically and bearing in mind that they should be followed by meetings with the executive leadership of shipping lines.
