In the southern half of the Canal from Lake Timsah to Suez, the events of the day were on a smaller scale, but none the less interesting. It will be remembered that Suez had been by this time in the possession of the British navy for nearly three weeks, and the advanced guard of the Indian Contingent and the first battalion of the Seaforth Highlanders, under Lieutenant-Colonel Stockwell, had arrived from Aden.

Rear-Admiral Sir William Hewett, Commander-in-Chief of the naval forces in the East Indies, had charge of the operations at Suez. According to his reports, in the afternoon of the 17th August, the rebels were seen intrenching themselves in front of the British position, and movements of Bedouins on the left flank also called for attention. Under these circumstances, it was decided by the Admiral not to send any of the Highlanders away without previously reconnoitring the neighbourhood.

On the night of the 18th, Hewett caused the telegraph wires to be cut between Suez and the first Canal station, and on Saturday morning notices were issued that from that date, the 19th instant, until the prohibition was formally removed, no ships or boats would be allowed to pass into the Canal from the Suez side without special permission. The damage to the wire on the above occasion was soon repaired, but on the following night he caused the poles which conveyed the line across the creek close to the Company's offices to be cut down, and placed a guard over them to prevent their being restored.

On the 20th, at daylight, 400 Highlanders, under Colonel Stockwell, were disembarked from the transport Bancoora, and marched eight miles in the direction of Chalouf to make a feint attack in front. At the same time the gun-vessels Sea Gull and Mosquito, with 200 more of the Highlanders, were also despatched to Chalouf by the Maritime Canal. The party under Colonel Stockwell returned about 4 p.m. without having come in touch with the enemy.

The gun-vessels, meanwhile, had been more successful. The first that they had seen of the enemy along the Canal was a cavalry patrol, about three miles from Chalouf. On the gun-vessels approaching this latter place, some 800 infantry were discovered behind the railway embankment, which thus formed a natural intrenchment. The ships at once opened fire from their tops, to which the enemy replied, but made bad practice. This was followed by the prompt disembarkation of the 200 Highlanders, who, crossing the intervening Fresh-water Canal in boats, or by swimming, climbed up the intrenchment and carried the works with a rush, the enemy, scattered and broken, retreating across the plain. The gun-vessels then returned to Suez.

With the exception of the Serapeum portion between Lake Timsah and the Bitter Lakes, where no annoyance or interruption of traffic was expected, the whole of the Maritime Canal was in possession of the British Navy by nightfall of August the 20th. On the following day the Tourmaline and the Don moored permanently at Kantara, where a caravan road to Syria crosses the Canal, and there established a strongly defended post; while the gunboats in the southern half completed the link which perfected the chain from Port Saïd to Suez.

Having seized the Canal, the British prepared to protect it. Between Ismailia and Suez this was effected by the Mosquito and Sea Gull, which patrolled it constantly, no force being permanently landed. In the northern half the Tourmaline and Don held Kantara and the stations adjoining on either side. Strong detachments of sailors from the fleet at Port Saïd, with Gatlings, were landed at the other stations. Breastworks were thrown up and regular camps established each night. At Port Saïd a camp was pitched between the European and Arab towns, where never less than 500 bluejackets and marines were kept. Intrenchments were thrown up across the Isthmus from Lake Menzaleh to the Mediterranean, and field-pieces mounted. In the Canal itself steam launches, &c., with armed crews were used as patrols, and the fast Thorneycroft torpedo launches of the Iris and Hecla were employed as despatch boats.

Sunday, August 20th, was a busy day at Port Saïd. The whole of the immense fleet of men-of-war and transports, as well as Sir Beauchamp Seymour in the Helicon, arrived early in the forenoon. As was expected, the Canal Company would accept no dues and would provide no pilots. There was some little delay until the way was clear. During this interval, to provide against possible trouble, 300 of the York and Lancaster Regiment were put on board the gun-vessel Falcon, and a similar number of the West Kent Regiment was embarked on board the gun-vessel Beacon, to form the advance. These vessels arrived at Ismailia in the evening of the same day.

Early in the afternoon the Nerissa led the transport fleet into the Canal, followed by the Rhosina, the troop-ship Euphrates, and the rest, including the Penelope, Admiral Hoskins' flagship. Slowly the stately procession passed through the Canal to Ismailia, which the vessels one by one reached either that night or early the next morning. Although the ships were unprovided with pilots, they were so skilfully navigated by their own officers, that very little difficulty arose, almost the only exception being the grounding of the Catalonia,[51] with the West Kent Regiment on board. She grounded at a distance of seven miles from Lake Timsah, and caused a temporary block; but did not for long interrupt the passage of the other vessels.

M. Ferdinand de Lesseps, from the steps of the Empress's Chalet at the entrance to Lake Timsah, watched the long line of British vessels of war and transports arriving from the Canal.[52] So little space was there that the vessels as they entered the Lake were moored abreast of each other, bow and stern. The Penelope was one of the first to take up her position.