The Suez Canal

The Suez Canal is a hundred mile ditch through the Egyptian desert that earns more money per mile than almost any piece of infrastructure on Earth. Before it existed, a ship travelling from London to Mumbai had to sail around the entire continent of Africa, adding six thousand miles and weeks to every voyage. When the canal opened in 1869, it cut that journey in half overnight. Roughly twelve to fifteen percent of all global trade now passes through this single channel. About fifty ships transit every day, each one paying handsomely for the privilege. The pricing model is what makes the Suez Canal a masterclass in value capture. The Suez Canal Authority uses its own proprietary measurement system called SCNT, Suez Canal Net Tonnage, which calculates vessel size differently from the international standard. This means a ship's toll cannot be directly compared to any other transit fee in the world. The authority sets the rates, adjusts them by vessel type, cargo category, and laden status, and there is no negotiation. A large container ship pays between three hundred thousand and one million dollars for a single twelve to sixteen hour transit.