Several companies in China, including the largest shipping firm, are negotiating participation in a stagnant $19 billion project involving 43 ports worldwide, with two of those located near the Panama Canal.
Cosco Shipping Corp. has been in talks about a partnership with Italian billionaire Gianluigi Aponte’s Terminal Investment Ltd. and a global group led by US asset manager BlackRock, as reported by a source familiar with the situation.
This development follows Beijing’s strong resistance, which poses a risk to the deal that would transfer control of a port owned by Li Ka-shing of Hong Kong to Till and BlackRock, both major players in asset management.
President Trump had previously touted the sale as a significant national security achievement, aiming to “recover” the Panama Canal and reduce China’s presence in vital shipping routes.
Incorporating Cosco and other Chinese state-owned companies seems to be a potential way to move the deal forward after intense trade discussions between US officials and their counterparts in Beijing last month.
The consortium faces a deadline at the end of July, following a 145-day consultation period regarding the port contracts, having already missed its initial target of securing a contract by early April.
Aponte’s family-run Mediterranean shipping business has emerged as a key investor, with BlackRock likely looking to take control of the two Panama ports involved in the arrangement.
Should the deal go through, it would solidify Aponte’s status as a leading player in terminal operations globally after purchasing the port from Li’s CK Hutchison Holdings.
China continues to oppose such transactions, raising concerns about possible negative impacts on global trade and shipping logistics.
Negotiations are still in progress, and the details of the transaction have yet to be settled, according to sources.
BlackRock did not provide comments, while Cosco and TIL were also unavailable for immediate responses.
The White House and CK Hutchison have not yet responded to inquiries for comments.
The Panama Canal, constructed by US engineers, was handed back to Panama between 1977 and 1999 as part of a treaty that ensured its permanent neutrality.
The head of the Panama Canal operators has expressed concerns that the proposed deal could jeopardize this neutrality.
“If trading happens in a way we are currently set up to understand, it could potentially create risks related to capacity concentration,” remarked Ricaulte Vazquez Morales, Panama Canal manager, in a recent Financial Times interview.
“Significant consolidation of terminal operators under one entity would contradict neutrality and negatively affect competitiveness in the Panama market.”
