• Suez Canal Authority, JICA sign $22 million deal for diving support vessel

• Vessel to boost canal security, emergency response and ship maneuvering

• Canal traffic fell sharply in 2024 but shows early recovery signs

The Suez Canal Authority (SCA) and the Japan International Cooperation Agency (JICA) signed a 1 billion Egyptian pound ($22 million) agreement on Sunday, Dec. 28, to finance the construction and delivery of the first diving support vessel (DSV) for the canal’s fleet.

The 45-metre-long, 10-metre-wide vessel will enhance maritime security, conduct towing operations and support ship maneuvering, the authority said. It will also strengthen emergency response capabilities, contributing to the safe and sustainable operation of the canal.

Egyptian Minister of Planning and Economic Development Rania Al-Mashat, who attended the signing, said the agreement followed directives from President Abdel Fattah Al-Sisi to strengthen bilateral ties and draw on Japanese development and technological expertise to support Egypt’s development agenda.

The Suez Canal is a strategic waterway linking the Mediterranean and Red Seas and one of the world’s most important trade routes, accounting for about 12% of global trade, according to the Egyptian government. In recent years, the Israeli-Palestinian conflict and subsequent pro-Palestinian Houthi attacks in the Red Sea have led to a sharp drop in canal traffic.

U.N. trade and development agency UNCTAD estimates that in 2024, Suez Canal transits fell 42% from their peak, with major shipping companies temporarily suspending passages through the waterway.

In late December 2024, SCA Chairman Osama Rabie confirmed a sharp decline in maritime traffic and canal revenue. He said the number of transiting ships had halved, from 26,400 in 2023 to about 13,200 in 2024, pushing revenue down to nearly $4 billion from more than $10 billion a year earlier.

However, navigation activity has shown signs of recovery since the start of the year, rising by 8.6% in the first quarter of 2025, according to government figures, helped by a gradual return of regional stability.

According to Lloyd’s List, the Suez Canal Authority is stepping up diplomatic and commercial efforts to restore confidence, aimed at reviving traffic.

Lydie Mobio