- The Ben Gurion Canal will provide a significant alternative for Israel and its allies, like the US, who have been facing maritime threats from the Yemeni Houthis and Iran.
- The canal can create significant economic competition for Egypt, especially for countries like China, whose major trading activity passes through the Suez Canal.
- The Ben Gurion Canal would be advantageous for India, as it would offer multiple routes and better accessibility to the Mediterranean region.
Amid the war in Gaza, Israel has recently considered constructing a new canal that would connect the Arabian Sea to the Mediterranean Sea, passing through the Gulf of Aqaba. This canal would be called the Ben Gurion Canal and serve as an alternative to the Suez Canal. This canal would provide a significant alternative for Israel and its allies, like the United States of America, who have been facing maritime threats from the Yemeni Houthis and Iran. The Yemeni Houthis, who support the Palestinian cause, have been specifically targeting Israeli ships moving through the region.
As a result, the Port of Eilat has witnessed an 85% reduction in traffic due to Houthi attacks. It has also become increasingly difficult for American, Israeli allies and other ships to pass through the Suez Canal region. With 12% of global maritime trade passing through the Suez Canal, any obstruction is economically challenging. The canal’s revenue has already dropped from $9.4 billion to $7.2 billion in 2023-24. Additionally, the increased risk has nearly doubled insurance premiums for ships operating in the region, with war risk premiums rising to 0.75% of a vessel’s value.
The Ben Gurion Canal would be important for Israel compared to the Suez Canal due to its two lanes, each 50 meters deep and 200 meters wide. Congestion has been a significant problem in the Suez Canal, as demonstrated in 2021 when the container ship Ever Given got stuck, causing losses worth $9.6 billion in just six days. If this canal is realized, it would help address the maritime insecurity developed in the region by the Yemeni Houthis, as security would fall under Israel’s control.
The canal could also create significant economic competition for Egypt, especially for countries like China, whose major trading activity passes through the Suez Canal. This could pose an economic challenge for Egypt, which generates billions of dollars from the Suez Canal. Conversely, it could create an economic opportunity for Israel. Moreover, the Ben Gurion Canal could serve not only as a commercial route to decongest the Suez Canal but also enhance Israel’s military maritime accessibility, helping its allies deter threats from Iranian proxies.
This specific canal development could also provide a strategic advantage to the United States of America by offering easier access to the Indian Ocean region. The construction of the canal would give the United States a direct route to increase its military and economic presence in the Indo-Pacific region.
For India, the implications would likely be positive, given its strong relations with Israel. Economically, this canal would be advantageous for India, as it would offer multiple routes and better accessibility to the Mediterranean region. More importantly, it would reduce the time and resources needed for India to connect with the Mediterranean, thereby enhancing its overall trade with Europe.
Aayush Pal is a freelance writer on contemporary geopolitical developments. The views expressed in his work are entirely his own.
Shrivara Mahajan