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Sharp drop in Suez Canal revenues adds to Egypt's woes

Sharp drop in Suez Canal revenues adds to Egypt's woes

Egypt's already considerable economic problems took a turn for the worse last month as revenues from transit of shipping through the Suez Canal dropped by half as a result of security problems in  the Red Sea and the Gulf of Aden. Attacks by Houthi rebels on commercial vessels forced major shipping companies to divert away from the key global trade artery. Income from the international strategic waterway last month dropped to $428 million, compared to $804 million in January 2023, Osama Rabie, chairman of the Suez Canal Authority, said in an interview with Egyptian television channel ON TV. The total number of ships through the Suez Canal last month fell to 1,362 vessels, down 36 per cent from the 2,155 vessels navigating the canal during January 2023, he said. Houthi militants in Yemen began attacking commercial vessels in October in solidarity with the Palestinians in the Israel-Gaza war, and show no signs of retreating despite the US and Western allies attempting to deter the Iran-backed group with air strikes, which began on January 12.  Many shipping companies have rerouted their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa. The Suez Canal is the shortest sea route between Asia and Europe. With about 12 per cent of the world's shipping traffic passing through it, the waterway is a major facilitator of global trade. The canal is also a crucial source of foreign currency for Egypt. The North African economy, already grappling with record inflation and a heavy debt burden was further impacted by the Israel-Gaza war, which has slowed tourism and decreased shipping through the Suez Canal. Egypt is "particularly exposed" to the Red Sea shipping crisis as the country generates about 2.2 per cent of its gross domestic product in annual balance-of-payment receipts and 1.2 per cent of GDP in fiscal revenue from Suez Canal dues, the International Monetary Fund said in its regional economic outlook in January.

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EU seeks new enhanced partnership agreement with Tajikistan as it pursues a more assertive role in Central Asia

EU seeks new enhanced partnership agreement with Tajikistan as it pursues a more assertive role in Central Asia

The Council of the European Union on 8 December adopted guidelines for the European Commission and the High Representative for Foreign Affairs and Security Policy to negotiate, on behalf of the EU and its member states, a new Enhanced Partnership and Cooperation Agreement (EPCA) with Tajikistan. Tajikistan is a landlocked country in Central Asia. It has an area of 143,100 km2 and an estimated population of 9,749,625 people. It is bordered by Afghanistan to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east. Like other Central Asian republics, Tajikistan is currently seeking to diversify its international relations, including by strengthening its relations with the European Union. A statement posted on the website of the Council of the European Union said that the EU is determined to deepen its relations with the Central Asian countries, even more so in the current geopolitical environment. The negotiation of an Enhanced Partnership and Cooperation Agreement with Tajikistan will be a significant step forward in this regard. It will provide a platform for improved political cooperation, trade and investment between the EU and Tajikistan, incentivising and supporting reforms. Progress in these negotiations will also depend on tangible improvements in Tajikistan’s human rights situation, including with regard to the freedom of expression, media and assembly.
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New undersea hydrogen pipeline between Spain and France to be ready 'by 2030'

New undersea hydrogen pipeline between Spain and France to be ready 'by 2030'

The leaders of France, Portugal and Spain announced on Friday (9 December) that the undersea pipeline between Barcelona and Marseille, expected to be completed by 2030, will transport exclusively hydrogen. Also present at the meeting in Alicante, European Commission President Ursula von der Leyen said the H2Med project "goes in the right direction" as it "has the potential to help us build a real European hydrogen backbone." "We will produce ten million tonnes of renewable hydrogen in the EU by 2030 and we plan to import in addition another 10 million tonnes. Hydrogen will have to reach our industry. This is why we also identified a series of strategic corridors including one crossing Europe from West to East, via the Iberian Peninsula." "This is why today I warmly welcome this agreement between France, Spain and Portugal", Von der Leyen said.
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EU and Kazakhstan strengthen their strategic partnership with the signing of agreement on raw materials

EU and Kazakhstan strengthen their strategic partnership with the signing of agreement on raw materials

The European Union (EU) and Kazakhstan have strengthen their strategic partnership by signing an agreement on raw materials, batteries and renewable hydrogen on Monday (7 November) at a ceremony on the margins of the 27th UN Climate Change Conference of the Parties (COP27), which kicked off in Sharm El-Sheikh, Egypt. The agreement focuses on the development of a secure and sustainable supply of raw materials and refined materials, renewable hydrogen and battery value chains, and contributes to the green and digital transformation, reported the press service of the European Commission.  Prime Minister Alikhan Smailov, who is representing Kazakhstan at the COP27, said that the document will create conditions for the establishment of financial and technological cooperation between Kazakhstan and EU industrial alliances. EU Commission President Ursula von der Leyen noted the partnership will build a cleaner foundation for both economies.
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Monday Commentary
Monday Commentary: Why Central Asia matters

Monday Commentary: Why Central Asia matters

Very often, Central Asia is referred to as Russia’s back yard, even though today the region feels more like China’s front garden. But whilst the two “inseparable” friends, compete for influence and resources, the five Central Asian countries have set on a course to integrate themselves in global processes, break out of their geographic - and more importantly their geo-political constraints - and deliver better for their people. In this week's Monday Commentary on commonspace.eu, Dennis Sammut says that the Central Asian states have been reaching out to the EU and the US, whilst domestically some of them have embarked on deep reforms considered all but unimaginable until recently. The visit of European Council president Charles Michel to the region on 27-28 October marked a high point in a new phase in the relationship between the EU and Central Asia. In Kazakhstan, Michel not only met the Kazakh leadership, but also held a summit with the five Central Asian leaders in Astana, before travelling to Uzbekistan. For both the Central Asians and for the EU this is a watershed moment, and the beginning of a long journey. Europe’s approach to Central Asia needs to be respectful, both to the five countries themselves, and to their existing partners. Arrogance, even of the intellectual kind will simply backfire. But respect does not mean meekness. As a heavyweight in international relations, even if for the moment its economic weight dwarfs its political weight, the EU needs to approach Central Asia neither as a supplicant, nor as a benefactor, but simply as a reliable partner. Furthermore, this partnership needs to be diverse, multi-tiered and nuanced. It must take in relations with citizens, where Europe has much to offer both in terms of being a model, but also in terms of what it can share in areas such as education, innovation, youth welfare, women’s rights and diversity.