Egypt has launched construction of a new Suez Canal that aims to speed up traffic along the existing waterway and boost the country's battered economy.

The project, estimated to cost 4 billion US dollars, foresees the creation of a million jobs at a time when Egypt is struggling to recover from more than three years of political turmoil since the ouster of long-time autocrat Hosni Mubarak.

Officials said the new waterway would be funded by Egyptian and foreign investors.