Saudi marine transport firms suffer losses due to Egypt unrest

Recent political upheavals in Egypt have caused terrible losses to Saudi investors in the marine transportation sector along the Red Sea. According to familiar sources in the sector, the volatile political conditions have caused losses of billions of riyals to Saudi businesses.
Many investors left the sector altogether after a series of losses in maritime transport between Saudi Arabia and Egypt due to an almost complete halt in the marine traffic between the two countries and the decline in tourism, which was dependent on marine ferries that commute the Gulf citizens.
"Official bodies in Egypt forced some Saudi businesses to stop operations so as to allow Egyptian ferries to take advantage of the season,” a Saudi investor said. This was echoed by many of his compatriots.
Abdullah Al-Twaijri, board member of the United Company for Onshore Offshore Lines, stated that the companies are incurring losses for over a year. “They used to work in full capacity in the past,” he added.
Saudi investors work in several liners commuting passengers and cargo between the ports of Saudi Arabia and Egypt. “Investors working between the Saudi Dhiba port and Hurghada, Safaga and Sharm El-Sheikh in Egypt are among the most affected by the recent events,” Al-Twaijri said. “Maritime transportation mostly depends on summer vacation to compensate losses of the other seasons,” he added.
Some investors intend to shift their investments to other countries, while merchants of marine transportation consider moving their ferries to other locations in the Mediterranean and Arabian Sea, he said.
Saleh Al-Mezyied, an employee at a maritime booking office, said marine transportation had declined by more than 80 percent. “This caused huge losses to these offices,” he added.
According to him, marine transportation between Saudi Arabia and Egypt is no longer profitable, especially to the Saudi side after the recent constrains on Saudi Investors by the Egyptian authorities.
Saudi investors say that certain measures may keep them in the competition arena of marine transport. The most important is designating ferries that raise the Saudi flag to commute Haj and Umrah pilgrims, with commitments of land transportation to the holy cities. The other measure is to exempt Saudi investors of the Saudi ports fees. “Such moves are bound to support Saudi investments in marine businesses,” a Saudi investor said.