The planned artificial waterway is supposed to connect the Black Sea with the Sea of Marmara and, based on the model of the Suez Canal, is supposed to provide Ankara with long-term income from transit fees. In addition, the new canal should relieve maritime traffic in the Bosphorus Strait, which is one of the busiest, but also the most dangerous sea routes in the world.
Last year, 40,172 ships passed through the Bosphorus Strait. In total, a record 84,640 vessels passed through both Turkish straits (Bosphorus and Dardanelles). The largest part was made up of ships with regular cargo, followed by bulk and container ships. The new canal should have a capacity of about 60,000 vessels per year.
Turkish President Erdogan calls the Istanbul Canal project “his dream” and, according to him, it is “one of the biggest projects of the century, which cannot even be compared with the Panama, Suez or Corinth Canals.”
The project is not only motivated by infrastructure, but also by economic policy. The Suez Canal is considered one of the most profitable waterways in the world and annually generates billions of euros for Egypt. According to forecasts, revenues could increase to almost twelve billion dollars by the end of the decade. This development increases global interest in artificial channels, which – unlike natural straits – have the legal right to charge fees, reminds BBC News Türkce.
And that is the fundamental difference: According to international maritime law, passage through natural straits such as the Bosphorus or the Strait of Hormuz is free. Conversely, man-made waterways, such as the Suez or Panama Canals, may collect tolls. The planned Istanbul Canal would thus give Ankara a new financial source.
Doubts about benefits
However, the economic viability of the project is controversial. It is estimated that the planned budget may double, which will undoubtedly be reflected in the fees for the canal. It is not clear whether shipping companies will be willing to pay these amounts, or pay at all, when they can use the Bosphorus.
Opponents of the project are environmental experts. Due to the construction, a large area of forests is to be cut down, which, according to ecologists, will threaten the complex ecosystem of the region. Experts are also concerned about the impact on drinking water sources for Istanbul. The impact of the building on the earthquakes that the city is dealing with is unclear. Huge masses of soil are also a problem, which can delay the project and also make it more expensive.
Iran is currently testing the limits of shipping. Tehran wants to charge fees for passage through the Strait of Hormuz, despite the clear limitations of international law. A spokesman for the International Maritime Organization warned that it would set a “dangerous precedent” for world trade.
“Any kind of tolls on ships or military control in the Strait of Hormuz by individual countries would shake the foundations of world trade,” CDU foreign policy expert Armin Laschet (CDU) warned in Focus. He described the Iranian plans as “piracy”.
According to estimates, transportation fees in this area could generate annual revenues of up to eight billion dollars. At the same time, however, the costs of transport, insurance premiums and delivery times would increase.
The result is a strategic reorganization of trade routes. Detours already extend the transport time between Asia and Europe by up to two weeks. Initiatives around the Strait of Gibraltar also show that states are looking for alternatives.
