Panama Canal to sell two new ports and boost competition
ACP
The Panama Canal Authority is aiming to sell the rights to two new planned ports within its zone, in a bid to improve competitiveness among ocean carriers.
The Panama Canal Authority (ACP) wants to raise competition with
two new ports, due to tensions over the two existing ports and who controls
them, and a rise in demand on the waterway.
Since January, US president Donald Trump has made it a
promise to “retake” the waterway from China’s alleged control. It is not
accurate that China operates the canal, although Chinese companies are involved
in port operations, fuelling the clash over the port operations and the prompts
from Trump-supporting senators which urged Panama’s government to cut alleged
ties with China. The Panama Ports Company is owned by Hong Kong firm CK
Hutchinson Holdings and manages two large container terminals on the canal.
In March, after the claims made by the Trump administration,
Hong Kong firm CK Hutchinson Holdings came to an agreement to sell its two
ports to American asset management firm BlackRock. However, this deal has
since stalled due to further geopolitical tensions with China.
Ricaurte Vásquez Morales, CEO of the ACP previously warned
that the BlackRock deal would risk the canal’s neutrality. Now, after a
recent meeting with the United Nations Security Council, he has told the Wall
Street Journal: “We need to boost container capacity and bring in more
players for an equal playing field.”
He said the facilities and terminals are experiencing
significant demand, and that a broader expansion strategy is necessary to enhance
services at the canal. The Panama Canal saw a total of 1,012 transits in July
2025, an 8% increase from June, according to a recent Lloyd’s List report.
