SUEZ CANAL

The Suez Canal is an artificial sea-level waterway running north–south across Egypt’s Isthmus of Suez. It is a vital international shipping route, connecting the Mediterranean Sea to the Indian Ocean via the city of Suez on the Red Sea. 

• The canal connects Port Said on the Mediterranean Sea to the Indian Ocean via the Egyptian city of Suez on the Red Sea.
• It serves as a crucial international shipping route, allowing vessels to navigate between Europe and Asia without having to circumnavigate the African continent.
• It is one of the world’s most heavily used shipping lanes, carrying over 12% of world trade by volume.
• It provides a crucial link for oil, natural gas and cargo being shipped from East to West.

History:

• The idea of constructing a canal across the Isthmus of Suez dates back to ancient times. It was during the nineteenth century that significant efforts were made.
• Constructed by the Suez Canal Company, led by French diplomat Ferdinand de Lesseps.
• Opened in 1869.
• Originally under joint British-French control; nationalized by Egypt in 1956 under President Gamal Abdel Nasser—leading to the Suez Crisis.

Importance:

• Strategic Trade Route: Allows ships to avoid the long route around the Cape of Good Hope.
• For International trade: The canal carries – 12% of world trade, 7% of world’s oil, 30% container – ship daily.
• Reduces travel time between Europe and South Asia/East Asia by about 7,000 km.
• Source of revenue to Egypt: It is a major source of revenue for Egypt. The revenue from the canal in 2022 reached $8 billion.
• Energy Security: The canal’s location makes it a key link for shipping crude oil and other hydrocarbons from countries such as Saudi Arabia to Europe and North America.

Importance for India:

• Indian trade worth $200 billion to/from North America, South America and Europe is carried out using this route.
• It enables the Indian Navy to project its presence in the region and participate in global naval operations. This highlights its strategic importance for India.

Challenges:

• Navigational Bottlenecks and Blockages: The canal is narrow in certain stretches, especially the older sections.
• Geopolitical Tensions: for example, Israel-Palestine war, Arab-Israeli wars.
• Security Threats: region is vulnerable to terrorist attacks, sabotage, military blockades (Houthi attacks)
• Climate Change and Rising Sea Levels: Rising temperatures and water salinity can affect canal operations and nearby ecosystems. Potential sea-level rise could lead to coastal erosion or impact canal infrastructure over time.