THE SUEZ CANAL PROJECT TO ACCOMMODATE SUPER TANKERS

Seventy-five percent of the Canal's revenue came from oil tankers; but many of the tankers built during the last decade are too large for the Canal at its present capacity. A project, therefore, has been worked out by the Canal authorities for accommodating supertankers. The projected deepening and widening of the Suez Canal would be economically beneficial both to Egypt and to the users (including the oil-producing countries, the oil companies, the shipping industry and the consuming countries). The authors reach this conclusion after reviewing the estimated cost in relation to the quantities of Middle East oil going to northwestern and to southern Europe, comparative costs of transporting it by the Cape route and by existing and projected pipelines, and future revenue under possible new toll systems. This paper attempts to appraise the project from a purely economic point of view, not entering the political aspects.

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    London School of Economics and Political Science

    Houghton Street, Aldwych
    London WC2A 2AE,   England 
  • Authors:
    • Hansen, B
    • Tourk, K
  • Publication Date: 1974-5

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  • Accession Number: 00057105
  • Record Type: Publication
  • Source Agency: London School of Economics and Political Science
  • Files: TRIS
  • Created Date: Jul 31 1974 12:00AM