Is this the opening gambit?
Two Panama Canal ports go to US investor. Just days after he took office US president Donald Trump announced his intention to restore US control over the Panama Canal, which was handed back to Panama in 1999. The change of ownership of two ports may lend weight to that plan.
On 4 March, Blackrock signed an agreement to acquire 90% of the Panama Ports Company, the operator of the port of Balboa on the Pacific side and the port of Cristóbal on the Atlantic side of the Panama Canal. The agreement ends control by Hong Kong-based CK Hutchison Holdings, which has been criticised for potentially strengthening China’s strategic position in Central America.
“A security policy success”
Through this acquisition Blackrock has taken over 80% of the shares in 43 ports in 23 countries – including key locations in Mexico, the Netherlands, Egypt and in Australia. The purchase price of USD 22.8 billion is still subject to approval by Panama’s government. Hutchison Port Holdings was last valued at USD 13 billion, meaning the sale brings a significant profit for the previous owners.
While the US is celebrating the acquisition as a security policy success, uncertainties remain. Ryan C. Berg, director of the Americas Programme at the Center for Strategic and International Studies (CSIS), warned that existing Chinese infrastructure in the ports – such as ZPMC cranes or digital surveillance systems – could still pose risks. In 2023, six such cranes were purchased for Balboa and seven for Cristóbal, and it remains unclear whether previous operators granted Chinese firms access to the relevant data.
A significant move for Latin America
The acquisition has wider implications beyond Panama. Hutchison operates six more ports in Latin America, including key box terminals in Mexico and the Bahamas.
Opportunity to deepen cooperation?
Christopher Hernandez-Roy, the deputy director of the CSIS Americas Programme, noted that ports like Lázaro Cárdenas, Manzanillo and Ensenada are known transhipment points for illicit goods. Between 2015 and 2023, Mexican authorities seized 273 million doses of fentanyl there, underscoring the urgency of stronger anti-smuggling efforts.
In the long term, the deal shows that US economic policy in Latin America is increasingly aimed at countering Chinese investments. According to the CSIS this may be seen as an opportunity for the US and Panama to deepen cooperation in intelligence sharing, cybersecurity and infrastructure development.