Cash-strapped Egypt increased transit fees for ships passing through the Suez Canal, one of the world’s most crucial waterways, with hikes of up to 10%.

Suez Canal

• The Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez; and dividing Africa and Asia.
• Constructed by the Suez Canal Company between 1859 and 1869, it officially opened on 17 November 1869.
• The canal was earlier controlled by British and French interests in its initial years but was nationalized in 1956 by Egypt’s then leader Gamal Abdel Nasser.
• It extends from the northern terminus of Port Said to the southern terminus of Port Tewfik at the city of Suez.
• Its length is 193.30 km including its northern and southern access channels.

Its significance

• The Suez Canal provides a crucial link for oil, natural gas and cargo being shipping from East to West.

• About 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal.
• It provides a major shortcut for ships moving between Europe and Asia, who before its construction had to sail around Africa to complete the same journey.
• As per a report, the canal is a major source of income for Egypt’s economy, with the African country earning $5.61 billion in revenues from it last year.

Try this PYQ:

Q.Between India and East Asia, the navigation time and distance can be greatly reduced by which of the following?

1. Deepening the Malacca straits between Malaysia and Indonesia.
2. Opening a new canal across the Kra isthmus between the Gulf of Siam and Andaman sea.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Post your answers here.

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