Suez Canal Authority (SCA) is an Egyptian state-owned authority which owns, operates and maintains the Suez Canal. Founded on 26 July 1956, following the nationalization of the cana l and the Suez Canal Company by the Egyptian government, the Authority is responsible for managing, exploiting, maintaining, and improving the Suez Canal. It is also exclusively responsible for issuing regulations related to navigation in the Suez Canal and other regulations necessary for the proper functioning of the facility.[2][3]
The Suez Canal Authority has a board of directors whose chairman and members are appointed, dismissed, and have their salaries and bonuses determined by a decree issued by the President of Egypt. The Authority levies fees for navigation and transit through the canal, as well as fees for pilotage, towing, mooring, and other related services, in accordance with applicable laws and regulations. The Authority has an independent budget, prepared according to the rules governing commercial enterprises. The fiscal year begins on July 1st and ends on June 30th of each year.[4]
Establishment and organization
SCA is an independent authority having legal personality. SCA[5] was established by the nationalization act signed on 26 July 1956 by the Egyptian president Gamal Abdel Nasser. The act at the same time nationalized the Suez Canal Company and transferred all its assets and employees to the SCA established by this act.[6]
The head office is located in Ismailia. In Port Said the administration building of the earlier Suez Canal Company is used. Its board of directors comprises 14 persons, including the chairman and managing director.[citation needed]
Assets, duties and responsibilities
SCA owns the Suez Canal and all areas, buildings and equipment pertaining thereto.[clarification needed] SCA issues the Rules of Navigation, specifies the tolls for the use of the canal and collects them. The tolls are expressed in XDR and collected in USD, GBP, EUR and other currencies.[7] In 2008, the total revenue in tolls was 5.381 billion USD for the passage of a total of 21,415 vessels - resulting in an average toll of 251,314.5 USD per vessel.[citation needed]
SCA is responsible for the operation and maintenance of the Suez Canal, for the safety of the traffic and for all other matters relating thereto. According to the nationalisation act, SCA is bound by the 1888 Convention of Constantinople, which grants the right of free access and use of the canal at equal conditions to all ships, commercial ships and ships of war, in times of peace or of war, even to ships of belligerent parties.
SCA is responsible for the computerized traffic management supported by radar, for the 14 pilot stations and their pilots. Since 1996, SCA operates the Maritime Training and Simulation Center for its pilots. SCA operates some 60 ships and boats, such as tugs, dredgers, cranes, and smaller boats.[citation needed]
According to SCA's web site, its facilities also include 114 ferry connections with 36 ferry boats; the Ahmed Hamdi road tunnel; the Nile Shipyard; the roads alongside the canal; a silk production in a farm at Serabium using treated sanitary waste water for irrigation; water plants in the canal cities; 12,000 housing units; a hospital in Ismailia and emergency hospitals at both ends of the canal; and four schools and various sports and recreational centers.[citation needed]
Revenues
In 2020, the total revenue generated amounted to 5.61 billion USD and 18,829 ships with a total net tonnage of 1.17 billion passed through the canal.[8] Daily revenues are $15 million USD or €13 million.[9]
On 2 January 2022, SCA announced revenues of 6.3 billion USD for 2021 - the highest in the canal's history. This represented an increase of 12.8% over 2020. In total, 20,649 vessels transited the Suez Canal in 2021 - an increase of 10% over 2020.[10]
In 2022, annual revenue stood at $8 billion in transit fees.[11]
The Suez Canal set a new record with annual revenue of $9.4 billion in USD for the fiscal year that ended June 30, 2023.[12]
↑Rami Rayess. (14 September 2021). "Dead in the water: Northwest Passage will replace Suez as world’s transport route". Al Arabiya News website Retrieved 15 September 2021.
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