Suez Canal and its Alternative

Why in news?

Israel has come up with plans to create an alternative to the Suez Canal.

To know about Israel-Palestine conflict click here

What was the historical background of Suez Canal?

• Location- The Suez Canal is a man-made canal that connects the Mediterranean Sea to the Red Sea, providing a crucial shortcut for shipping between Europe and Asia.
• It cuts north-south across the Isthmus of Suez in Egypt.
• Year of construction - Construction of the canal began in 1859 and it took around 10 years to complete the project.
• Management- The canal is owned and maintained by the Suez Canal Authority (SCA), which is under the government of Egypt.

• Convention of Constantinople- Signed in 1888 by the maritime powers, it stated that the canal should be open to ships of all nations in times of both peace and war.
• Acts of hostility in the waters of the canal and the construction of fortifications on its banks were forbidden by the convention.
• The British and French owned most of the shares in the canal company and used their influence to protect their interests.
• Suez Crisis - In 1956, Egypt took over the Suez Canal from the British and French shareholders to fund a dam project on the Nile River.
• This nationalisation triggered a military attack by UK, France and Israel on Egypt, marking the 1^st deployment of the UN Peacekeeping Forces anywhere in the world.
• They were stationed in Sinai to maintain peace between Egypt and Israel after the withdrawal of the invading forces.
• Egypt-Israel conflict- In 1967, Egypt expelled UN peacekeepers from Sinai and fought with Israel.
• Israel captured Sinai and Egypt blocked the Suez Canal for 8 years.
• In 1975, Egypt and Israel signed an agreement to end the hostilities and reopen the canal.
• Arab-Israeli War - The canal was also a key battleground in the 1973 Arab-Israeli War, where Egypt and Syria attacked Israel.

Established in 2015, Suez Canal Economic Zone is a special economic zone located in Egypt to promote economic growth and to attract foreign investment to the country.

What is the significance of Suez Canal?

• Global trade- The canal is a vital link between the West and East, carrying 10% of the global trade every year.
  • An estimated 12% of world maritime trade passes through the Suez Canal.
• Time efficient- The canal ensured that ships travelling between Europe and Asia would not have to travel all the way around the continent of Africa.
  • The canal cut the distance between London and Mumbai by a more than 41%.
• Economy lifeline- As per World Bank, the canal accounts for nearly 2% of Egypt’s GDP.
• Traffic management- The canal handles an average of 50 ships per day, with a total value of 9.5 billion dollars.

What are the issues with Suez Canal?

• Shipping bottleneck- Despite being widened and deepened over the years, the canal remains perennially congested, with long queues at either end.
• Suez Canal blockage- In 2021, the cargo ship “Ever Given” got stuck in the canal thereby affecting the global supply chain and oil prices.
  • It was estimated that the resulting “traffic jam” held up an estimated 9.6 billion dollars of goods every day.
• Monopoly- Egypt’s control over the waterway has been a source of conflict for almost 70 years now.

What was the alternative proposed to Suez Canal?

References

1. Indian Express- A plan to join Red Sea with Mediterranean Sea
2. Indian Express- History of Suez Canal