SAUDIS WANT TO BUILD A CANAL TO BYPASS THE
STRAIT OF HORMUZ
|The Saudis want to construct a canal across the peninsula in the center of the picture allowing ships and oil tankers to avoid having to pass close to the shore of Iran, a nation run by fanatics located above the horseshoe shaped bend in the water way connecting the Oil fields of the Middle East to the Indian Ocean. Our analysts think that Iran will not be governed by fanatics forever and once the strait is safe a canal may not be economically competitive. They think the economic magic number is in a construction cost that is cheap enough to pay off the canal with only moderate tolls in under ten years. The canal would probably decrease the likelihood of attacks on shipping but would not put the shipping far enough away from Iran to eliminate the need for regular naval patrols. Probably most maritime insurance syndicates would require use of the canal if the tolls are at all reasonable into the foreseeable future. Since the oil buying nations would not be able to completely eliminate the costs of naval deployments we don't see them springing for the costs. The Saudis would have to fund the construction and would have to come up with a cheap to build and cheap to maintain design that can be paid for in about 10 years with reasonable tolls.|
HERE IS A LEAD IN AND A LINK TO THE FULL STORY FROM THE HELLENIC SHIPPING NEWS
A Saudi national has proposed digging a canal that would allow ships and tankers to bypass the Strait of Hormuz.
The canal, with a length of between 60 and 100 kilometres, would link the Arabian Gulf with the Gulf of Oman and would end reliance on the Strait of Hormuz, said Sami Al Muhaidab.
According to reports, an average of 14 tankers per day passed out of the Arabian Gulf through the Strait in 2011, carrying 17 million barrels of crude oil, representing 35 per cent of the world's seaborne oil shipments and 20 per cent of oil traded worldwide.
However, tension, mainly between Iran and the US, has often caused Tehran to threaten that it would seal off the Strait of Hormuz......"
Saudi proposes plan to dig Strait of Hormuz bypass
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