A contract was made with M. Hardon for the execution of the works, under which the company were to receive 60 per cent. of the prices fixed by the original estimates of the International Commission. The drawing up of the plans, the general superintendence, and the supply of the machinery and stores, were, however, to be left in the hands of the company. This agreement was subsequently cancelled, and the company took the works under its own control, making contracts with four different firms, who undertook to complete the principal undertakings for a total sum of 4,588,800l.[148] With these arrangements, the canal was fairly launched. From 1861 till 1869 the whole line of the canal was the busiest centre of industrial activity in Europe. The total amount of excavation required was 107 millions of cubic metres. This is a larger amount of digging than has been accomplished in the case of any other work on record.[149] The operations were required to be carried on at the same time with the fresh-water canal from Nefiche to Suez, and with the maritime canal from Suez to Port Said, so that two distinct undertakings were concurrently being constructed. Some details as to the annual progress of the works may here be suitably introduced.

In 1861, the works were chiefly confined to digging wells along the line of the maritime canal, to erecting sheds for 10,000 labourers, and providing dock basins, water condensers, forges and workshops, steam saw-mills, and opening a water supply by a canal which should join the Nile to Lake Timsah.

In 1862, the eastern mole at Port Said was begun, together with a landing stage 70 yards by 22, in 16 feet of water, and an arsenal dock 160 yards by 135 and 5 feet depth. Seven Arab villages were built, and north of Lake Timsah, a sea-water cutting was continued from Kantara to El Ferdane. A large dredging plant ordered from various makers in England and France was delivered.

In 1863, four dredgers and cranes were got to work at Port Said, and south of Lake Timsah twenty-one dredgers were at work, and three others were nearly ready. Provision was made for adding twenty more dredgers, each estimated to be capable of raising 1,050,000 cubic feet per month. The fresh-water canal from Nefiche to Suez was begun, and 24 miles were finished. This canal was 64 feet at the water-line, 26 feet at the bottom, and had 6 feet draught of water. The excavations required were about 50 millions of cubic feet. On the north of Lake Timsah, 18,000 men were at work, digging a trench 50 feet by 4 to 6 feet deep, connecting the Mediterranean and Lake Timsah, and 153,600,000 cubic feet of excavation was done at 0·68 fr. per cubic metre, being within the original estimate, despite the heavy labour of carrying the earth up an incline of 70 feet. From Lake Timsah to Toussoum Plateau on the south, the canal was made 190 feet wide and 6 feet below the Mediterranean level, involving 21,200,000 cubic feet of excavation.

In 1864, 20 new dredgers, with barges and accessories, were fitted up, 43,000,000 cubic feet of excavation was done, from Port Said to El Ferdane, and 7,600,000 cubic feet between Timsah and Serapeum, as well as 4,500,000 cubic feet of gypsous stone along Lake Ballah. A large area of land was also reclaimed, in order to provide for new works, quays were extended, and the canal Cheikh Carponti, connecting Port Said with the lake and Damietta, was completed. The fresh-water canal was also completed to the sea, over 55 miles, having occupied thirteen months, and involved 118,000,000 cubic feet of excavation. Corvées, or native forced labour, were abolished, and 7954 European labourers, with 10,806 others, were set to work.

In 1865 the general works of the Maritime Canal were extended.

In 1866 Messrs. Borel and Levalley got 32 trough dredgers at work along 35 miles of the canal, and the canal from Port Said to Timsah was widened to 325 feet, thus allowing of the formation of strands for the protection of banks from passing vessels, and economising the stone embankments. The Viceroy set 80,000 men to work at the canal from Cairo to Wady, so as to allow of the passage of the Nile waters at all seasons.

In 1867, 353,000,000 cubic feet of dredging was accomplished, and long trough dredgers were applied to the work between Port Said and Timsah, which was filled to sea level. The large lake to Chalouf, and the small lake to Suez, were excavated by hand labour. Of the contract of M. Couvreux to excavate 146,000,000 cubic feet, 122,500,000 cubic feet had been completed on 1st June.

In 1868 excellent progress was made. Messrs. Borel and Levalley had dredged at Port Said 123,000,000 out of their total quantity of 165,000,000 cubic feet. On the 15th April 1,200,000,000 cubic feet still remained to be excavated in the Maritime Canal. Between Port Said and Timsah, 5¼ miles had been done with 156,000,000 cubic feet of excavation, and at El Ferdane, 3¾ miles had been done with 34,000,000, Couvreux thereby finishing six months in advance of the contract time. The monthly work at this time was 74,500,000 cubic feet, accomplished with 8 elevator dredgers, 30 dredgers with barges, 22 long trough dredgers, 22 inclined planes, and 7500 labourers.

Besides the ordinary work of canalisation along the line of route, very extensive harbour operations had to be undertaken at Port Said and Suez. In the former case, two moles were erected, the western 2700 yards long, and the eastern 1950 yards, and requiring 250,000 blocks of artificial stone, each of 350 cubic feet and weighing 20 tons. A dock basin, 76 acres in extent had to be provided, and another basin, called the Basin de Commerce, of 10 acres extent and 37 feet deep. At Suez, the roadstead had to be dredged, and dykes and embankments constructed, the latter involving the submergence of 2,300,000 cubic feet of stone. The Suez breakwater, when finished, had over 1600 yards of stonework.