An article in The Economist (8 August, 2015) shows that Egypt is building "A Bigger and Better Suez Canal". "As a feat of brawn, it is impressive. But is it necessary?", the article asks.
Egypt's apparent display of brawn is extremely uncustomary, given her finances. Also, the Economist article doesn't fully explain the need for a much-wider canal at such costs. What kind of container vessels are the Egyptians expecting? What major revenue stream will change the picture entirely?
The following may give some clue -
(a) Work is steaming ahead on the construction of a much larger and wider Chinese-funded canal through Nicaragua, which is likely to marginalize the Panama Canal under the shadow of the United States;
(b) The Suez Canal is a key route in China's One Belt, One Road pan-continental strategy. The new and wider Nicaragua Canal will enable China' extra-large container vessels to travel from the East Coast to the Pacific, connecting them to the New Maritime Silk Road traffic;
Download One Belt, One Road Map
(c) China is building and is going to manage a new Special Economic Zone in the Suez area. This SEZ is designed to connect with the Mediterranean economies as well as Islamic/Arab economies in the Middle East.
Download Paper-on-a-new-china-africa-financial-investment-business-partnership-4 (p.13 Item (e))
The whole geo-economics of the region are poised to change dramatically.
While the United States counts her aircraft carriers and military allies, China is quietly building a global business empire connected by trade and infrastructure.
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