CK Hutchison Holdings agrees to sell stake in Panama Canal ports

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March 17, 2025
4 min read

CK Hutchison Holdings agrees to sell stake in Panama Canal ports

Hong Kong-based CK Hutchison Holdings has agreed to sell its stake in two major ports near the Panama Canal. The decision comes amid increasing US scrutiny over Chinese influence in critical global trade routes, with Washington making it clear that it sees Beijing’s role in Panama as a security concern.

The sale will see shares in CK Hutchison Holdings and Hutchison Port Group Holdings transferred to a consortium that includes BlackRock, Global Infrastructure Partners, and Terminal Investment Limited. This consortium will now control 90% of Panama Ports Company, which operates the Balboa and Cristobal ports—key transit points at either end of the canal.

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The Panama Canal is one of the most crucial waterways in the world, allowing ships to move between the Atlantic and Pacific Oceans without having to make the long and treacherous journey around South America. Any disruption here would have ripple effects on global trade, including the UK, where supply chains are already under pressure.

The deal follows months of political pressure from the United States, particularly after US Senator Ted Cruz raised concerns that China could potentially use the ports to disrupt passage through the canal. His argument? That the ports under Hutchison’s control provided Beijing with “ready observation posts” to influence global shipping routes. The warning was reinforced in February when US Secretary of State Marco Rubio visited Panama, urging the government to cut back on Chinese involvement in strategic infrastructure.

Interestingly, shortly after this visit, Panama withdrew from China’s Belt and Road Initiative, a global infrastructure programme designed to expand China’s influence through massive investments in ports, roads, and rail networks worldwide. This decision didn’t go unnoticed in Beijing, which criticised the move, calling it a sign of US pressure tactics.

CK Hutchison had recently been granted a 25-year contract extension to operate these ports, but an audit was already underway to scrutinise this agreement. Speculation grew that this audit was laying the groundwork to revoke the contract and hand over control to a US firm. And now, with BlackRock and its partners stepping in, the shift in control is official.

The situation in Panama is more than just a regional dispute; it’s part of a wider global trend where strategic assets—ports, energy supplies, and critical infrastructure—are increasingly being caught in the crossfire of geopolitical rivalries. And as trade tensions between the US and China continue to escalate, this won’t be the last time we see political manoeuvring over who controls the world’s most vital trade routes.

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