Introduction
The sale of two ports near the Panama Canal to a consortium led by Mediterranean Shipping Company (MSC) raises concerns about the canal's neutrality, according to its head, Ricaurte Vasquez.
Context
Vasquez highlighted potential risks of capacity concentration due to the sale, emphasizing that if a significant number of terminal operations were controlled by a single shipping entity, it could undermine Panama's market competitiveness. The deal comes amidst heightened scrutiny from various parties, including U.S. officials and regulators in China.
Developments
- MSC is a leading player in global container shipping and has become the principal investor in a group seeking to acquire a total of 43 ports, including the two in Panama, for $22.8 billion.
- CK Hutchison confirmed this investment last month, following criticism regarding the sale plans which were originally associated with U.S. firm BlackRock, which remains in the consortium.
- U.S. President Donald Trump has also expressed concerns, labeling the deal as a method to "reclaim" the waterway from potential Chinese influence.
- In April, China's market regulator indicated it would closely monitor the transaction and enforce an antitrust review.
Conclusion
Vasquez further suggested that the canal's authority could benefit from the situation by pursuing its own terminal operations, potentially revitalizing plans for a terminal in the Port of Corozal at the canal's Pacific end.
