The Suez Canal has begun the dredging work to expand its southern section in the wake of a high-profile blockage for six days in March.
The expansion project will allow for two-way traffic south of the Great Bitter Lake by extending an existing second canal lane, as well as widening and deepening the canal’s southern end.
On its website, the Suez Canal Authority (SCA) said the dredging began after Egyptian President Abdel Fattah El-Sisi ordered the agency “to immediately start implementing” the expansion and to set a timetable for completing the work “as soon as possible”.
The development came after the 20,388-teu Ever Given (built 2018) ran aground in the Suez Canal’s southern sector on 23 March 2021, causing its longest closure in recent decades.
The canal is one of the world’s busiest waterways, with official data showing the passage of 18,829 ships with a net tonnage of 1.17bn tonnes last year.
At the height of congestion, ship agents said around 400 vessels were held up both within and near the canal. Bulkers and boxships were the most numerous vessels stuck in the queue.
While grounding incidents in the canal were usually resolved in a matter of hours, Smit Salvage, Nippon Salvage and the SCA spent nearly six days trying to refloat the ultra-large containership.
In early April, the SCA moved to arrest the Ever Green over $916m claims for financial losses, damage and costs related to the incident.
Those were made against the vessel’s owner, Japan's Shoei Kisen Kaisha, which has protection and indemnity insurance with the UK P&I Club.
The shipowner filed an appeal against the arrest on several grounds in early May, including the validity of the arrest and the lack of supporting evidence.
The Ismailia court of the First Instance in Egypt rejected the appeal.
But SCA chairman Osama Rabie reportedly suggested the authority could be prepared to cut the total bill to $600m, signalling a first sign of compromise.
The prolonged arrest is expected to add to cargo delay and damage. Shoei Kisen has declared general average to settle cargo and salvage insurance claims.
