Font size:
Print
Suez Canal
Context:
The opening of the Suez Canal to ships on November 17, 1869, marked a transformative moment in global trade.
About Suez Canal
- This 193-kilometre artificial waterway, connecting the Red Sea to the Mediterranean via the Isthmus of Suez, significantly shortened the maritime route between Asia and Europe by up to 7,000 kilometres.
- By eliminating the need for ships to navigate around Africa’s southern tip to travel between the Indian and Atlantic Oceans, the canal has become one of the world’s busiest trade arteries, facilitating around 12% of global commerce today.
The Construction of the Canal
- The idea of a trade route through Suez linking Europe and Asia dates back to antiquity.
- Historical records suggest a canal may have been built in the region during the reign of Pharaoh Senusret III in the second millennium BCE.
- The concept for a modern canal, however, emerged during the height of European colonial expansion.
- In 1799, Napoleon attempted to construct a canal but failed due to erroneous measurements.
- The project gained momentum under French diplomat and engineer Ferdinand de Lesseps, who secured the support of Egyptian viceroy Sai’id Pasha.
- In 1858, the Universal Suez Ship Canal Company was established to construct and operate the canal for 99 years, after which ownership would transfer to Egypt.
- Construction spanned more than a decade, fraught with immense challenges, including financial setbacks and significant human loss.
- Future Egyptian leader Gamal Abdel Nasser claimed that 1.2 million workers died during the process.
- Despite these hardships, the canal opened for international navigation in 1869.
Turbulent History
- Initially, French and British investors held most shares in the canal company, using the waterway to bolster European colonial interests in Asia and East Africa.
- Under a 1936 treaty, Britain maintained a large defensive presence along the canal zone.
- As the colonial era waned, the Suez Canal became a focal point of geopolitical conflict.
- In 1954, British troops began withdrawing from the canal under pressure from Egyptian nationalists, but tensions persisted.
- In 1956, Egyptian President Nasser nationalised the canal, intending to use its revenue to fund the Aswan Dam’s construction on the Nile River.
- This led to the Suez Crisis, with the UK, France, and Israel launching a military campaign against Egypt.
- Although militarily successful, the intervention ended in a political triumph for Nasser, as international pressure forced the allied forces to withdraw.
- The United Nations, for the first time, deployed peacekeeping forces to manage tensions between Israel and Egypt.
- In 1967, Nasser’s decision to expel UN forces from Sinai reignited conflict, leading to Israel’s occupation of Sinai. In response, Egypt shut the canal to all shipping for eight years.
- The canal faced subsequent disruptions, notably in March 2021, when the massive container ship MV Ever Given became lodged in a narrow section, halting traffic for six days. The blockage stranded hundreds of vessels and disrupted global trade.
An Economic Lifeline
- Since its completion, the Suez Canal has been vital to trade between the East and West.
- Today, it handles 12% of global trade, 7% of the world’s oil, and 30% of daily container traffic, with over 20,000 ships transiting annually.
- The 2021 blockage underscored its importance to the global economy.
- During the incident, the estimated value of delayed goods reached $400 million per hour.
For a deeply interconnected global economy, the Suez Canal remains a critical linchpin, with any disruption carrying far-reaching consequences.
