Shipping Arabia, October 28, 2026 – The Suez Canal Authority (SCA) is expanding ship repair, tugboat manufacturing and marine services to diversify its revenue sources after Red Sea security disruptions caused an estimated $17 billion in losses over two and a half years. The strategy aims to reduce dependence on vessel transit fees while developing Egypt’s maritime industrial capabilities.
SCA Chairman Osama Rabie outlined the plans during a session on foreign exchange resources and debt management at the Egypt 2026 Forum. He explained that the authority is pursuing two parallel priorities: developing the Suez Canal waterway and marine fleet while expanding commercial activities that generate revenue beyond vessel transit fees.
Rabie said the authority is investing in shipyards, marine services and manufacturing facilities, with a particular focus on tugboats and ship repair. These activities form part of a broader effort to strengthen the SCA’s financial resilience during periods of reduced shipping traffic.
Suez Canal Revenue Declines Amid Red Sea Disruptions
Rabie revealed that Suez Canal revenue fell from $10.2 billion in 2023 to approximately $3.9 billion in 2024, following escalating regional tensions and attacks on commercial shipping. Revenue subsequently reached around $4.1 billion in 2025, remaining significantly below pre-crisis levels.
The security situation in the Red Sea and Bab el-Mandeb has prompted shipping companies to redirect vessels away from the canal. As a result, daily vessel transits declined from approximately 75–80 ships before the crisis to around 30 during the disruptions.
Rabie estimated that the cumulative impact of the crisis had cost the authority approximately $17 billion over two and a half years. The reduction in shipping traffic has also affected foreign currency inflows into Egypt.
The SCA has consequently intensified discussions with shipping lines, maritime agents, industry representatives and international organizations. These consultations focus on the implications of the crisis and the conditions necessary to restore traffic through the Red Sea and Bab el-Mandeb.
According to Rabie, the authority has emphasized that alternative routes, particularly the passage around the Cape of Good Hope, do not represent a sustainable replacement for the Suez Canal. He highlighted the canal’s competitive advantages in transit time and cost, while stressing that improved regional security would support the return of vessels.
The authority is also exploring additional services for shipping companies that continue operating through the region despite the security challenges.
Expanding Marine Services and Ship Repair Operations
A central element of the Suez Canal revenue diversification strategy involves expanding the range of services available to commercial vessels. The SCA is developing capabilities in maritime salvage, towage, maintenance, ship repair, crew changes, marine ambulance services and waste collection.
Rabie said these activities provide opportunities to generate additional income while strengthening the authority’s ability to respond to maritime emergencies.
He highlighted the case of the Greek-owned bulk carrier ZOGRAFIA, which sustained damage following a missile attack near Bab el-Mandeb. The authority deployed salvage and towing resources to assist the vessel and transfer it to Suez Shipyard for repair.
The operation demonstrated how the SCA can use its existing maritime assets and technical capabilities to support vessels facing emergencies in the region. Rabie also emphasized the importance of such services in strengthening the canal’s reputation among international shipping companies.
Beyond the Suez Canal, the authority has undertaken marine infrastructure and ship repair assignments in other markets.
One example involved the rehabilitation of Libya’s Port of Sirte. The SCA deployed dredging equipment to undertake clearance and dredging operations, helping reopen the port after approximately 14 years of closure.
The authority has also carried out ship repair work for vessels belonging to companies operating in the Arab region. Some of these activities have led to annual contracts for repair services.
Discussing the financial contribution of activities outside vessel transit fees, Rabie cited returns of approximately $928 million and EGP 141 billion during the period addressed in his remarks.
Shipyard Development and Tugboat Export Manufacturing
The SCA is expanding its maritime industrial operations through shipyard development, new manufacturing facilities and cooperation with private-sector partners.
Rabie said the authority has worked to establish six new companies as part of its industrial and service development plans. These include partnerships with private businesses, government entities and specialized companies.
The initiative supports efforts to localize maritime manufacturing, strengthen domestic production and create additional sources of foreign currency revenue.
Shipyard development is underway at facilities in Port Said, Suez and Safaga. The investments aim to improve Egypt’s capabilities in shipbuilding, vessel maintenance, repair operations and tugboat construction.
The authority is also developing manufacturing facilities for tugboats, yachts and other maritime-related products. These projects are intended to increase local industrial content while opening opportunities to serve international markets.
Rabie announced that the SCA had exported two tugboats to an Italian company, each with a bollard pull of 90 tons. He described the exports as evidence of the potential for Egyptian maritime manufacturing to become a source of foreign currency revenue.
In addition, the authority plans to establish a factory specifically dedicated to manufacturing tugboats for export. Once completed, the facility is expected to target annual production of approximately 30 tugboats.
The proposed factory forms part of the authority’s strategy to increase maritime industrial exports and expand its international customer base.
Previous Crises Shape the SCA’s Diversification Strategy
Rabie placed the current Red Sea disruption within the context of several major challenges that have affected the canal in recent years.
During the COVID-19 pandemic, the authority introduced a flexible marketing policy that included transit fee discounts ranging from 45% to 75% for selected vessel categories.
The incentives targeted ships that did not ordinarily use the canal, including certain liquefied natural gas carriers and vessels operating on alternative routes. The objective was to attract additional traffic and offset some of the effects of the slowdown in global maritime trade.
Rabie also referred to the grounding of the container ship EVER GIVEN in March 2021, which blocked the canal for six days and generated estimated losses of approximately $90 million.
He said the authority used a combination of dredging and maritime salvage techniques to refloat the vessel. The operation avoided a potentially much longer disruption, with initial estimates suggesting that the salvage process could take several months.
Following the reopening, the SCA reorganized the passage of approximately 422 vessels that had accumulated in the Mediterranean and Red Seas. Working around the clock, the authority cleared the backlog in approximately four days.
These experiences, Rabie explained, demonstrated the importance of operational flexibility and the ability to respond quickly to unexpected developments affecting maritime traffic.
Continued Investment in Canal Infrastructure and Maritime Industries
Despite the decline in transit volumes, the SCA intends to continue developing the canal waterway and renewing its marine fleet.
Rabie said these investments remain essential to improving operational efficiency and maintaining the canal’s competitiveness. At the same time, expanding industrial production and marine services will help the authority manage fluctuations in global shipping activity.
The approach combines traditional canal operations with shipbuilding, repair services, towage, salvage and other maritime activities that can generate revenue independently of transit volumes.
Rabie emphasized that the authority’s strategy is not limited to waiting for vessel traffic to recover. Instead, it seeks to make better use of existing assets, develop local maritime industries and establish additional commercial activities.
The recovery of Red Sea and Bab el-Mandeb shipping remains closely linked to improvements in regional security. Meanwhile, the authority is pursuing broader maritime revenue streams to reduce its exposure to geopolitical disruptions and fluctuations in canal traffic.
Source: Al Mal News
