What question did this study set out to answer?

This research aims to assess the economic benefits of deepening and widening the Suez Canal.

February 28, 2026

The Suez Canal Project to Accommodate Super-Tankers: An Economic Appraisal

Key Points

This research aims to assess the economic benefits of deepening and widening the Suez Canal.
Reviewed estimated costs of the canal expansion.
Compared transportation costs via the Cape route and pipelines.
Analyzed future revenue potentials under new toll systems.
Projected expansion economically benefits Egypt and global oil users.
Transporting oil via the Suez Canal is cheaper than alternative routes.
New toll systems could enhance future revenue significantly.

Abstract

The projected deepening and widening of the Suez Canal would be economically beneficial both to Egypt and to the users (including the oil-producing countries, the oil companies, the shipping industry and the consuming countries). The authors reach this conclusion after reviewing the estimated cost in relation to the quantities of Middle East oil going to northwestern and to southern Europe, comparative costs of transporting it by the Cape route and by existing and projected pipelines, and future revenue under possible new toll systems.

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Cite This Study

Hansen et al. (Wed,) studied this question.

synapsesocial.com/papers/69a286850a974eb0d3c01912 https://doi.org/https://doi.org/10.3828/jtep.1974.8.2.103

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