Egypt celebrates Suez Canal expansion

Egypt today opened an $8.2 billion expansion to the Suez Canal in the first of a series of mega projects promised by the government to transform the country after years of political and often violent turmoil.

Foreign leaders attended an inauguration ceremony on Thursday, promoted by Egypt's government as an occasion for national pride.

The expansion will allow for two-way traffic along part of the route, as well as for larger vessels overall. Construction of the new lane began a year ago, on the orders of Egypt's President Abdel Fattah al-Sisi.

Egypt's government hopes the revenues will boost the economy - but analysts have questioned the projections.

They point out that the volume of world trade has not been growing at the pace needed to deliver the sums Egypt hopes to collect.

Takings from Suez could also be hit by an expansion of the Panama Canal, due to be completed next year, which will compete for traffic along the Asia-North America route.

Cairo’s streets are adorned with billboards and flags praising El-Sisi and celebrating “Egypt’s gift to the world.” But many Egyptians have questioned whether the money could have been better spent on welfare or other infrastructure work.

Security has been tightened for the inauguration ceremony amid fears of attack by militants allied to Islamic State.

The militants, based in the Sinai peninsula, have killed hundreds of people since the military overthrew the Islamist government of president Mohammed Morsi in 2013.

The original canal, opened in 1869, currently handles 7% of global sea-borne trade. The waterway connects the Mediterranean to the Red Sea, providing the shortest sea link between Asia and Europe. Its nationalisation led to a brief war in 1956, pitting Egypt against the UK, France and Israel.