Benefits of Suez canal to Egypt
Construction of the Suez Canal
The Suez Canal was constructed between 1859 and 1869. The main supervisor and engineer of the Canal’s plan was a French diplomat and engineer Ferdinand de Lesseps. This engineer realized that Napoleon Bonaparte’s idea of a canal through Egypt was feasible. However, he did not have the money to build the canal hence he had to convince Said Pasha to fund the project. The Universal Suez Ship Canal Company constructed the canal for $100 million and after a decade, the project was completed and unveiled on 17th November 1869.
The Suez Canal was initially controlled by France because the initial agreement gave a 99 year control period for the constructors of the project. Britain also controlled the canal and this was seen through the military presence around the Suez. Controls changed after the Suez Canal crisis in the 1950s and Egypt was given the full control of the waterway in 1962 after paying all its debts to the constructors of the Canal. During the crisis, the canal was closed after Egypt sunk ships which failed to pay taxes to the country.
The benefits of Suez canal to Egypt
There are many countries that have benefited from the construction of the Suez Canal. Nevertheless, Egypt is the greatest beneficiary considering the fact that the waterway is located in the country. Amongst the major gains that Egypt has gotten from the Suez Canal include:
- Source of Revenue. Since the 1960s Egypt has been the country in control of the Suez Canal. It therefore earns revenue paid from the taxes charged on the vessels that transport oil, weapons and other products via the Suez Canal. The government of Egypt earns revenue worth millions of dollars through these taxes considering the high traffic of trade vessels that use this major trade route.
- Improved trade. Egypt’s trade with other nations has also improved greatly. It can import and export goods more easily to destinations like Europe, Middle East and even Asia. Trade volumes between these areas have also increased because of the existence of the Suez Canal.
- Link to other nations. The Suez Canal is one of the most important waterways in the world. This is because it links different continents across the Mediterranean and Red seas as well as the Indian Ocean. This route is important in transporting military staff, weapons and different products.
- Tourist attraction. The beauty and size of the Suez Canal makes it a favorite tourist destination. Many have described it as a must visit site and most tourists that visit the canal are awestruck by its beauty and detail. This has also earned Egypt extra revenue from the tourists that pay the canal a visit.
- Employment opportunities. The government of Egypt has a governing authority that is in charge of controlling the Suez Canal. It collects revenue and employs personnel who man the canal. There are also many spillover industries that have benefited from the Suez Canal and these include cargo and shipping industries in addition to water transportation industries. Traders in varied sectors in Egypt have also benefited because of easy access to the canal.
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