Introduction

The proposed Ben Gurion Canal project in Israel aims to create an alternative maritime route bypassing the Suez Canal, significantly reshaping global trade. If realized, the canal would provide an alternative passage for international shipping, potentially reducing transit costs and time for vessels traveling between Europe and Asia. While the project presents economic benefits, it poses a serious threat to Egypt, whose economy heavily relies on revenue from the Suez Canal.

Economic and Strategic Implications

The Ben Gurion Canal, if constructed, would challenge Egypt’s monopoly on canal-based trade, forcing the Suez Canal to lower its transit charges to remain competitive. This shift could bring cost benefits to global shipping but severely impact Egypt’s economy.

Factor	Ben Gurion Canal	Suez Canal
Location	Israel (connecting the Mediterranean to the Red Sea)	Egypt (connecting the Mediterranean to the Red Sea)
Length	Estimated 250-300 km	193 km
Construction Cost	Estimated $100-150 billion	Expansion cost in 2015 was $8 billion
Transit Fee Impact	Expected to reduce global shipping costs	Currently generates $9 billion annually for Egypt
Economic Impact	Strengthens Israel’s economy, diversifies trade routes	Loss of billions in revenue for Egypt
Security Considerations	Israel’s security policies may influence trade flows	Suez has geopolitical risks but remains stable

Alternative Trade Route Bypassing Suez

Apart from the Ben Gurion Canal, another alternative route is the Northern Sea Route (NSR), which runs along Russia’s Arctic coast. With climate change causing Arctic ice to recede, the NSR is becoming increasingly viable.

Route	Key Advantages	Challenges
Ben Gurion Canal	Reduces reliance on Suez, fosters competition, lowers costs	High construction cost, political instability
Northern Sea Route (NSR)	Shorter transit between Europe and Asia, no canal fees	Seasonal accessibility, harsh conditions
Cape of Good Hope (South Africa)	No canal fees, established route	Longer transit time, high fuel costs

Global Impact

• Shipping Companies Benefit: Increased competition could drive down transit fees, reducing overall shipping costs.
• Egypt Faces Economic Setback: If Ben Gurion Canal becomes operational, Egypt may lose billions in revenue annually.
• Middle East Geopolitical Shifts: The project could reposition Israel as a key maritime hub, enhancing its economic and political influence.
• Impact on Global Trade Routes: More trade route options may lead to more efficient global logistics.

Conclusion

The Ben Gurion Canal could redefine global trade, providing an alternative to the Suez Canal and intensifying competition. While it presents an economic advantage for Israel and the broader global economy, Egypt faces a significant financial challenge. The ultimate success of the project will depend on geopolitical stability, financial backing, and global shipping industry reception.

Would the world benefit? Likely yes. But for Egypt, this project could pose an existential threat to one of its primary economic lifelines.