President Jose Raul Murino of Panama stated on Thursday that the country might take control of two key ports that are part of the canal system.
Murino has urged the national government to terminate the existing contract with the current operator, CK Hutchison. This move could allow Panama to establish its own public-private partnerships for these ports.
CK Hutchison has reached a $20 billion deal to transfer ownership of over 40 ports worldwide, previously held by Hong Kong businessman Li Ka-Shing, to BlackRock and Mediterranean Shipping Company.
CK Hutchison holds a 90% stake in the Panama Port Company and oversees both Balboa and Cristobal Ports located at the canal’s entrances.
The contract was originally set for 25 years back in 2021, but changes were proposed later to accommodate President Trump’s request that the US “recover” control of these waterways, citing national security issues.
Italian billionaire Gianluigi Aponte’s family business, MSC, is expected to invest significantly, although the two ports in question will be passed on to BlackRock.
This week, the Panama Secretary’s Office initiated two cases aimed at getting the Supreme Court to nullify the contract with CK Hutchison.
“Right now, it’s unclear if the Port of Panama’s contract has been reviewed,” Murino mentioned during a press briefing on Thursday.
“We’re awaiting the court’s decision,” he added about the ongoing lawsuit.
Neither MSC, CK Hutchison, nor the White House provided immediate comments, and BlackRock also declined to make a statement.
This isn’t the first instance of Panama’s government attempting to modify the CK Hutchison contract; past claims suggest irregularities in the previous administration led to reduced revenue for Panama.
So far, there haven’t been any results from a recent audit conducted by the Secretary’s office.
China has expressed strong opposition to the BlackRock deal, fearing a loss of crucial access to the Panama Canal.
As reported by the Wall Street Journal, Chinese officials are threatening to intervene unless Cosco, China’s largest shipping company, secures shares equal to those of BlackRock and MSC’s stakeholders.
As tensions rise, discussions between China and the US concerning trade continue.
The Panama government believes that provincial partnerships could address issues related to major copper mines previously operated by Canada’s First Quantum Minerals.
“The concept is still in draft form and encompasses both ports and mines through collaborations with the state,” Murino emphasized.
