This paper is concerned with an investment appraisal of the Suez Canal large-scale dredging project from the viewpoint of the Egyptian economy. The Suez Canal Authority (SCA) has extensive plans for developing the Suez Canal waterway to accommodate very large vessels and this project will be carried out in two stages. The first stage, which is already underway, aims to widen and deepen the Canal in order to bring its wet cross-sectional area to approximately 3700 sq. m and the permissible draught to 53 ft. (instead of 1850 sq. m and 40 ft. respectively as at present). When this stage is completed, 150,000 d.w.t. vessels will be able to transit the Canal fully loaded, and tankers larger than this will be able to transit in a partially loaded or in ballast condition. The second stage aims at deepening the Canal to achieve a wet cross-section of approximately 5000 sq. m and a permissible draught of 67 ft. After this stage, the Canal will be able to handle vessels of up to 250,000 d.w.t. fully loaded, tankers up to 300,000 d.w.t. partially loaded, and any tanker over 300,000 d.w.t. in ballast. This paper is subdivided into six sections: the choice of appraisal techniques; the costs of the projects; the estimation of direct benefits to the Egyptian economy; external costs and benefits. Section 5 includes a comparison of alternative dredging projects for the Canal and a sensitivity analysis for discount rate and the growth rate of future oil demand by regions relevant to the Suez Canal route. The last section sums up the study.

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  • Corporate Authors:

    Taylor & Francis

    4 Park Square, Milton Park
    Abingdon,   United Kingdom  OX14 4RN
  • Authors:
    • Selim, H B
  • Publication Date: 1980

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Filing Info

  • Accession Number: 00323305
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 6 1981 12:00AM