CAIRO, June 7 (Xinhua) — The Egyptian cabinet approved in a meeting on Wednesday to establish a new Suez Canal holding company to control two state-run companies that belonged to the Suez Canal Authority (SCA), the cabinet said in a statement.

The new company, named Suez Canal Holding Company for Industries and Naval Services and Investments, will be headquartered in the northeastern city of Ismailia and will be subject to the public business sector provisions and regulations.

According to the decision, the new company will take charge of two companies previously run by SCA, namely Canal Mooring & Lights Company and Port Said Engineering Works & Marine Constructions Company, as subsidiaries.

The holding company is formed to boost maritime-related industrial and commercial activity, “including what is related to building, repairing and renovating ships,” said the statement.

The new company can establish other subsidiaries, but their establishment, duration, and purposes have to be determined by the SCA chairman.

The Suez Canal is one of Egypt’s main sources of national income and hard currency.

Connecting the Mediterranean Sea and the Red Sea, the man-made canal is a major lifeline for global seaborne trade, with some 12 percent of the world trade volume passing through it.