Turkey Fast-Tracks £20 Billion Istanbul Canal to Rival Suez Revenues Amid Global Maritime Tensions

Turkey fast-tracks the Istanbul Canal to generate billions in shipping tolls. Read how the £20bn project aims to bypass Bosphorus rules amidst Hormuz tensions.

By: AXL Media

Published: Apr 13, 2026, 7:56 AM EDT

Source: Information for this report was sourced from Business Insider Africa

The Rise of Toll-Based Waterways

As global maritime disruptions increase, Turkey is pushing forward with the Istanbul Canal, a massive £20 billion infrastructure project aimed at creating a toll-based corridor modeled after Egypt’s Suez Canal. The project, expected to be completed by 2027, will run parallel to the Bosphorus Strait and is designed to handle approximately 160 vessels or oil tankers annually. President Recep Tayyip Erdogan has characterized the canal as a transformative effort to ensure the safety of Istanbul while securing Turkey's economic future through a new stream of foreign currency.

Economic Inspiration from the Suez Canal

The ambition behind the Istanbul Canal is fueled by the significant revenue generated by the Suez Canal. Between January 1 and February 8, 2026, Suez revenues reached $449 million, an increase from $368 million during the same period in 2025. With the IMF projecting Suez earnings to hit $11.9 billion by 2030, other nations are eager to build artificial waterways. Unlike natural straits, which are governed by the "transit passage" rules of the UN Convention on the Law of the Sea (UNCLOS), man-made canals allow countries to levy structured tolls legally.

The Strait of Hormuz Standoff

The legality of maritime charging is currently a flashpoint in global politics. Reports indicate that Tehran is seeking provisions to demand fees from ships passing through the natural Strait of Hormuz, with proposed charges reaching up to $2 million per vessel. This move has been met with fierce resistance; U.S. President Donald Trump warned Iran to "stop now," and the International Maritime Organization (IMO) cautioned that such fees would set a "dangerous precedent" by violating global rules that prohibit tolls for passage through natural straits.