The Suez Canal ProjectPresented by-

Afreen Shaikh

Hamid Mehmood

Daaria Tysmbal

Gaurie Jalota

Gavish Naula

Interesting Facts about Suez Canal

O Shortest link between the east and

the west due to its unique

geographic location.

O Important international navigation

canal linking between the

Mediterranean sea at Port Said and

the Red Sea at Suez.

O At the beginning, the Canal was 164 km long, had a

water depth of 7.5 m.

O By the year 2001, the Canal was 190.25 km long, had a

water depth of 22.5 m.

O It is considered to be the first artificial canal to be used

in Travel and Trade.

Historical Background

O Egypt was the first country to dig in a man made

canal across its land to connect Mediterranean Sea

to the Red Sea via River Nile.

O The first Idea was to construct canal between Red

Sea and River Nile.

Time Line of Suez Canal

At 2000 BC Senusert Canal.

At 1310 BC Senti Canal.

At 600 BC another try by Necho.

At 285 BC Ptolemy Canal.

In 1799, Napoleon idea about New Canal between Red Sea and Mediterranean Sea.

Why was Suez Canal Built?Any Guess?

Saving Time either to sail around Africa

Transhipping freight

Passengers across the Suez Peninsula

Construction Condition

O A French enterprise took the initiative in obtaining a 99 year

concession for canal and organizing the Suez Canal Company,

mainly with the European capital, to build and operate it.

O In 1854 and 1856, Ferdinad de lesseps obtained a concession from

Sa’id Pasha, the viceroy of Egypt, to create a company to build the

canal which would be open for all nations.

O The work began in 1859 and its first part was completed

in 1862.

O Unfortunately, the work was suspended again in 1863,

when Ismail succeeded Pasha.

O Construction works went on well till 1863 and was

stopped in 1864 but was eventually completed on

November 17, 1869.

Stake holdersO The Suez Canal Company had been

incorporated as an Egyptian joint-stock

company with its head office in Paris.

O Despite much early official coolness, even

hostility, on the part of Great Britain, de

Lesseps was anxious for international

participation and offered shares widely.

O Only the French responded,

however, buying 52 percent of the

shares; of the remainder, 44

percent was taken up by Saʾīd

Pasha.

O The first board of directors

included representatives of 14

countries.

Finances

O The total estimated cost for the Suez canal was 200

million francs.

O The original capital subscribed for this great work

was eight million sterling or two hundred millions

francs, in 400,000 shares.

O Thus the company was started to build Suez

canal with 4,000,000l in hand.

O The final cost of the Canal at the end of

December, 1869 was more than double the

original estimate.

Organisational Breakdown Structure

Suez Canal Company

Project Managers Finance Operations Logistics Service

Legal

Viceroy

Egyptian workers

Workers

Conflicts during the Project: Political

O Work was stopped by Ottoman Empire.

O Due to Sa’id Pasha’s death, there was lack of support and

cooperation.

O Work became more complicated.

O Loss of labour because of tough environment like, bad

weather, low salary, etc.

Challenges and Obstacles

O The British Government had opposed the

project of the Canal.

O French Government Conflict Of Interest.

O Ottoman Empire didn’t support the project.

Risks

Financial• Over Budget which leads to risk transfer

to viceroy.

Operational• Labour revolution leads time frame

extensions.

Important Note:

Estimated constructions time:

1859-1862

Construction time: 1859-1869

The entire project was four years

behind schedule.

Operating: Starting from 1869

Make clear contractual

agreements and terms

when starting a project.

Development and training

of Resources.

Diplomatic in decision

making.

Encourage team work.

O In poorly run projects, problems can go undetected until the project fails. It's like the drip...drip...drip of an leaky underground pipe. Money is being lost, but you don't see it until there is an explosion.

O Joy Gumz

O numbers, when, how much, how long etc. Why did it happen, was it a success, major risks, stakeholders, political and economic dimensions and lessons learned as PMs.