Egypt is important for Danish Shipping
Significant issues are on the agenda for the Egyptian state visit to Denmark. For Danish shipping, particular focus is on the Suez Canal and the production of green fuels.
The Egyptian President Abdel Fattah Al-Sisi is on a state visit to Denmark, where he is meeting with Prime Minister Mette Frederiksen, among others.
Key topics such as migration, climate, and trade are on the agenda when representatives from the two countries meet.
Danish shipping companies have been trading with and sailing to Egypt for many years. Last year, Danish shipping companies exported goods worth 4.1 billion DKK to the Egyptian market.
“It is wise that the Danish government has prioritised collaboration with our African partners. There is enormous potential for green energy in Egypt. Danish shipping companies are already looking to Egypt as a potential partner in producing the green fuels that our industry will require on a large scale in the coming years. I hope that President Sisi’s visit to Denmark will help promote trade and energy collaboration,” says Anne H. Steffensen, CEO of Danish Shipping.
It is wise that the Danish government has prioritised collaboration with our African partners.
There are two particular reasons why Egypt is an important country for Danish shipping and why its significance for the industry is only expected to grow in the coming years.
First, Danish shipping has been one of the major users of the Suez Canal over the years. Hundreds of Danish-operated vessels pass through the canal every year.
However, the violent and unacceptable attacks by the Houthis on civilian merchant ships in and around the Red Sea, south of the Suez, last year brought much of this traffic to a halt. Most Danish ships now take the much longer route around Africa instead, with negative consequences for both the climate and crew welfare.
The drop in traffic through the Suez Canal has, naturally, also been a severe blow to the Egyptian economy.
“Egypt is a bridge between Africa and the Middle East, making it an important diplomatic partner for Denmark and other Western nations. Hopefully, Egypt will also play a role in resolving the conflict in the Red Sea region, so our ships can once again sail freely and safely in the area,” says Anne H. Steffensen.
Secondly, Egypt is an essential partner in the energy sector. The country aims to source 42% of its electricity from renewable energy by 2030. Denmark and Egypt have established an energy collaboration aimed at supporting Egypt’s green transition.
Egypt also has significant potential to become a key supplier of green fuels, particularly for the shipping industry.