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FINANCIAL NEWS
Egypt, German firm sign deal for machinery for Suez Canal
23 Nov 2014
(MENAFN) Egypt announced it has signed a deal with Herrenknecht AG, a German firm for the use of their machines to bore at least four tunnels under the Suez Canal, Arabian Business reported.
These tunnels are part of an USD8 billion project to expand the waterway of the canal, in a project which the government hopes will raise revenues and foreign currency reserves.
The Egyptian armed forces’ engineering division said that the contract with the German company includes the providing of three car and train tunnels in Port Said, the northern outlet of the canal into the Mediterranean Sea, while the tunnels themselves will be built built by Orascom Construction and other Arab contractors.
The Egyptian government said that it hopes that the expansion of the Suez Canal will almost triple revenues from the waterway by 2023 to reach USD13.5 billion compared with its current revenue of USD5 billion, with the new development expected to run alongside the existing 145-year-old waterway, which is known to be the fastest shipping route between Europe and Asia.
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