In 1859 the Compagnie Universelle du Canal Maritime de Suez set up its own postal system to convey administrative mail between its work sites and its offices in Alexandria, Port Said, Ismailia and Suez. Later, in 1860, it formed an agreement with the Posta Europea for the conveyance of its mail to the nearest Posta Europea office: Damietta, Suez or Zagazig.
This arrangement ran until 1865, when the Posta Europea was taken over by the Egyptian Government, after which the company resumed operation of its own postal system. Carriage of the mail was free for personal and business mail of company employees and other residents of the Canal area. In November 1867, to cover the cost of this service, it was decided to introduce a charge for the carriage of private mail, to take effect from July 1, 1868.
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