Li Ka-shing Reaches Agreement with BlackRock, Bringing Panama Canal Ports Under U.S. Control

The image shows a partial view of the Panama Canal. (Video screenshot)

[People News] A Hong Kong company that operates ports near the Panama Canal has agreed to sell its subsidiary responsible for managing these ports to a consortium that includes the U.S. company BlackRock Inc. This comes after former U.S. President Donald Trump accused China of interfering in the operation of this key shipping route.

Hong Kong billionaire Li Ka-shing and his family’s company, CK Hutchison Holdings Limited, announced in a filing on Tuesday (March 4) that they will sell all their shares in Hutchison Port Trust and Hutchison Port Group Trust. These two subsidiaries jointly own 80% of Hutchison Port Holdings (also known as Panama Ports Company), which operates 43 ports across 23 countries.

According to the filing, a consortium comprising BlackRock, Global Infrastructure Partners, and Terminal Investment Limited will acquire 90% of Panama Ports Company. This company owns and operates the Balboa and Cristóbal ports in Panama.

In January, U.S. Senator Ted Cruz, the Republican leader of the Senate Commerce, Science, and Transportation Committee, expressed concerns that China could use the Panama Canal to block ships or otherwise interfere with passage. He warned that these ports serve as "ready-made observation posts" for China to take action. "I believe this situation poses a serious national security risk to the United States," Cruz said.

In early February, U.S. Secretary of State Marco Rubio visited Panama and told Panamanian President José Raúl Mulino that Panama must reduce China's influence over the canal or risk potential U.S. retaliation. Mulino, however, denied that China has any control over canal operations.

Following Rubio’s visit, Panama withdrew from China’s Belt and Road Initiative, prompting condemnation from Beijing.

Although Trump has publicly threatened to reassert U.S. control over the canal, his administration has focused on Hutchison Ports.

Hutchison Ports recently secured a 25-year direct renewal contract to operate these ports, but an audit of the contract has already begun. Observers believe this audit could be a preliminary step toward re-bidding the contract. In recent weeks, there have been rumors that a U.S. company with close ties to the White House is being positioned to take over.

(Translated from Voice of America)