"The Italian 'Messina' intends to increase the number and capacities of transiting ships."
The head of the Egyptian Suez Canal Authority, Major General Osama Rabie, confirmed that the authority aims to diversify its sources of income by establishing logistical and maritime projects that serve global trade movement in the region.
On the other hand, Ignazio Messina, the CEO of the Italian shipping line "Messina," said on Thursday that his company intends to increase the number and capacities of its ships passing through the Suez Canal in the near future as part of the group's expansion policy.
A statement from the Suez Canal Authority quoted Messina during a video conference meeting with Major General Rabie, stating that his group looks forward to enhancing cooperation with the Suez Canal Authority and coordinating joint efforts to provide logistical services. This will enhance the leading position of the Suez Canal and support its transformation into a regional hub for maritime and logistical services in the Middle East and Africa, according to the Arab News Agency.
Major General Rabie stated that the authority aims to diversify its sources of income by establishing logistical and maritime projects that serve global trade movement in the region. He expressed appreciation for the extended relations with the Italian shipping line, which have recently manifested in the increasing number of ships belonging to the shipping line passing through the Suez Canal despite the current challenges in the Red Sea region.
Rabie emphasized the Suez Canal Authority's keenness to enhance cooperation with its clients and invest in expanding opportunities for collaboration through partnerships and attracting investments within the authority's strategy aimed at diversifying sources of income and not confining itself to canal transit fees by establishing logistical and maritime projects that serve global trade movement in the region.
Messina stated that his group seeks to expand its operations and aims to acquire and build container ships with large capacities to operate on maritime routes in the Middle East and Africa.
It is worth mentioning that the Italian shipping line "Messina" was established over 100 years ago and has been in cooperation with the Suez Canal Authority since the 1930s. One of the group's ships was among the first to pass through the canal after its reopening in 1975.
The movements of the Suez Canal Authority to diversify its sources of income coincide with the Egyptian President Abdel Fattah El-Sisi's confirmation last Monday of a decline in the revenues of the Suez Canal by between 40 and 50 percent since the beginning of the current year, due to disruptions in navigation in the Red Sea resulting from the attacks of the Houthi rebels.
Major General Rabie announced in a media statement that the revenues of the international navigation passage decreased from $804 million recorded in January last year to $428 million during the same month this year, with a deficit of 46 percent, attributing this to the navigation crisis in the Red Sea.
The revenues of the canal constitute one of the most prominent sources of foreign currency in Egypt, in addition to the remittances of Egyptians working abroad, exports, and tourism. The canal achieved financial revenues of $9.4 billion in the fiscal year 2022-2023, the highest annual revenues recorded, with an increase of about 35 percent compared to the previous year, according to the announcement by the authority last June.
