The Panama Canal plans to build two ports for $2.6 billion by 2029 amid uncertainty over the future of Hong Kong–based concessionaire Hutchison Holdings, the canal authority said Monday. The plan calls for the construction and concession of two terminals—Corozal on the Pacific and Telfers on the Atlantic—to increase container-handling capacity from 9.5 million TEUs a year to 15 million.
The project is being announced as the future of the Balboa (Pacific) and Cristóbal (Atlantic) ports, operated by Panama Ports, a Hutchison subsidiary, remains unclear. “We think that if it isn’t done here in Panama, it will happen elsewhere in the region, and we have to decide whether we want to stay competitive,” said Víctor Vial, Vice President of Finance at the Panama Canal Authority (ACP), at a press conference.
Vial made the remarks after meeting with about twenty companies interested in the project, including Hong Kong’s Cosco Shipping Ports, Singapore’s PSA International, Taiwan’s Evergreen, Germany’s Hapag-Lloyd, and Denmark’s Maersk.
The canal plans to invest more than $8.5 billion over the next decade to expand and diversify its business. Projects include the two ports, a gas pipeline, and a new reservoir. The ACP aims to award contracts for the new ports before the end of 2026, with operations at both terminals starting in 2029.
More capacity
Panama’s five main ports sit near the interoceanic canal and are operated under concessions by companies from the United States, Taiwan, Hong Kong, and Singapore. Recently, ACP chief Ricaurte Vásquez noted that these five ports are operating “practically at their limit.” The announcement comes amid the delayed sale process for Hutchison’s ports.
The company seeks to sell its stakes in the Panamanian terminals to a consortium led by U.S. firm BlackRock, as part of a global divestment package valued at $22.8 billion.
Washington views the operation favorably. U.S. President Donald Trump has threatened to take back the Panama Canal, arguing it is controlled by China. Beijing, however, is wary of an agreement that could harm its interests.
In addition, Panama’s Supreme Court must decide several lawsuits that could annul Hutchison’s port concessions. “We see this process as independent from what’s happening at Panama Ports. In the end, the lawsuits are essentially saying Panama needs more container capacity,” Vial said.
The 80-kilometer canal, whose main users are the United States and China, handles 5% of global maritime trade. It was inaugurated by the United States in 1914 and transferred to Panamanian control on the last day of 1999.
