Panama's Ports: A Battle for Control

Panama's Bold Move

Panama is making waves in the shipping world. The country's president, Jose Raul Mulino, has hinted that Panama might take over two major ports near the Panama Canal. This move could disrupt a huge $20 billion deal involving BlackRock and Mediterranean Shipping Company (MSC).

The Ports in Question

The ports in question, Balboa and Cristobal, are currently managed by CK Hutchison. This company has a big stake in Panama Ports Company, which operates these ports. Recently, CK Hutchison agreed to sell over 40 ports globally to BlackRock and MSC. The Panama ports were part of this deal.

Government's Discontent

But Panama's government is not happy. They believe CK Hutchison did not follow the right steps when renewing their contract. So, they asked the Supreme Court to cancel the contract. President Mulino said he does not see the current contract continuing.

History of Disputes

This is not the first time Panama has had issues with CK Hutchison. In the past, the government argued that the deal did not bring enough money to Panama. An audit was done, but the results are not public yet.

China's Involvement

China is also involved in this drama. They are worried about losing access to the Panama Canal. China's officials want their biggest shipping company, Cosco, to have a stake in the deal equal to BlackRock and MSC.

New Public-Private Partnerships

Meanwhile, Panama is thinking about new public-private partnerships. These could help with the ports and a copper mine that was previously operated by a Canadian company. The contract for the mine was canceled last year.