Context:
Recently, a tanker transporting crude oil broke down in a single-lane part of Egypt’s Suez Canal, briefly disrupting traffic in the global waterway.
Relevance:
GS II: International Relations
Dimensions of the Article:
- Suez Canal
- History
- Importance
Suez Canal
- The Suez Canal is a vital international shipping route that connects Port Said on the Mediterranean Sea to the Indian Ocean through the Egyptian city of Suez on the Red Sea.
- It allows vessels to travel between Europe and Asia without the need to navigate around the African continent.
Geographical Location:
- The canal is located in northeastern Egypt, spanning the Isthmus of Suez.
- It stretches approximately 120 miles (193 kilometers) from Port Said in the north to Suez in the south.
- It separates the African continent from the Sinai Peninsula.
History:
- The concept of a canal across the Isthmus of Suez dates back to ancient times, but significant efforts to construct it took place in the 19th century.
- The canal was opened for international navigation in 1869, with the Universal Suez Ship Canal Company, largely owned by the French and British, overseeing its construction.
- The canal was under British control until 1956 when Egypt nationalized it during the Suez Crisis.
- It was reopened for international navigation in 1957 under the management of the Suez Canal Authority.
Importance:
International Trade:
- The canal handles a significant portion of global trade, including 12% of world trade, 7% of the world’s oil, and 30% of container ship traffic daily.
- It provides a direct route between Europe and Asia, reducing fuel costs and transportation expenses, thereby facilitating cheaper international trade.
Energy Security:
- Due to its strategic location, the canal plays a crucial role in transporting crude oil and other hydrocarbons from countries like Saudi Arabia to Europe and North America.
Egypt’s Economy:
- The canal contributes about 2% to Egypt’s GDP, making it a significant source of revenue.
- In 2022, the revenue from the canal reached $8 billion, indicating its economic importance for Egypt.
India’s Trade and Energy Security:
- The Suez Canal is a major route for Indian trade worth $200 billion to/from North America, South America, and Europe.
- It facilitates the import and export of ethane with the US and crude imports from Latin America, playing a crucial role in India’s energy security.
- It enables the Indian Navy to project its presence in the region and participate in global naval operations, highlighting its strategic significance for India.
-Source: The Hindu
