THE 13,800-TEU CMA CGM Laperouse and the 8,900-TEU CMA CGM Titan led the procession during the inauguration of the "New Suez Canal", the company announced
CMA CGM Group, the world's third biggest container shipping company, has 11 of its main shipping lines transiting the now two-way Suez and thus won the honour of having two ships head of the inaugural procession.
The "new" Suez Canal is a 35-kilometre (22-mile) parallel extension. Announced last year, the US$8.2 billion project was billed as a major national accomplishment.
It also includes a deepening and widening of 37 kilometres of the existing canal. This will cut transit times for southbound ships by seven hours and allow larger vessels easier passage.
The Suez Canal Authority expects a much more revenue - $13.23 billion annually by 2023 compared with $5.3 billion in 2014, with the number of daily vessels rising from 49 to 97.
But some are sceptical and suggest that sluggish world trade makes it unlikely the project can deliver immediately on its promise, Reuters reports.
Ahmed Kamaly, an economist with the American University in Cairo, said the projections were "wishful thinking".
"There was no viability study done, or known of, to assess the viability of the project," he said.
For the project to reach its revenue targets, world trade would have to grow by nine per cent annually until 2023, said William Jackson of Capital Economics - higher than the three per cent average seen over the past four years.
Since 2011, Suez Canal revenue growth has failed to even keep pace with growth in world trade.
While global trade volumes rose by an average of 2.9 per cent from 2011-2014, Suez Canal revenue increased two per cent, Mr Jackson said.
WORLD SHIPPING
07 August 2015 - 17:38
CMA CGM ships lead procession through 'new two-way Suez Canal'
THE 13,800-TEU CMA CGM Laperouse and the 8,900-TEU CMA CGM Titan led the procession during the inauguration of the "New Suez Canal", the company announced.
WORLD SHIPPING
07 August 2015 - 17:38
CMA CGM ships lead procession through 'new two-way Suez Canal'
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