The Role of Suez Canal Development in Logistics Chain

This chapter provides an overview of existing and planned maritime infrastructure in the Red Sea. It describes the evolution of the international market in terms of supply and demand and the prevalence in maritime transport compared to other methods of transport. It then debates whether the infrastructures in the Red Sea are able to absorb the expected increase in trade flows or should we expect in the medium term that the Asian economy growth and the international trade bend. The main focus of the chapter deals with the discussion of the risks and opportunities which exist in the Suez Canal Regional Development megaproject. It covers the issues broadly from logistics activities to maritime transportation systems. It includes a review of logistics development, the characters of various transport operations, future direction in logistics development, and its cooperation with transport systems. The chapter concludes that competition is no longer linked to the importance of maritime artery or its infrastructure but the services offered by this artery. Finally, it suggests that the countries located on the Red Sea must cooperate to move toward integration and service complementarities and avoid competition and/or loss of opportunities. The pressing strategic question of “can we achieve integration and complementarities between the ports of the Red sea” needs to be dealt with without delay. The alternative can lead to unbalance in the economy and finance of the planned megaprojects and threatening their profitability caused by force of circumstance competition which is in full swing.