A group of investors led by American asset management giant BlackRock has agreed to buy majority stakes in two strategic ports at both ends of the Panama Canal. The nearly $23B deal places two of the four major ports along the 51-mile canal more firmly within US influence.
The US purchase comes after President Donald Trump expressed concerns about potential Chinese influence over the Panama Canal's operations. In addition to acquiring Hong Kong-based CK Hutchison's 90% ownership in Panama's Balboa and Cristóbal ports, the BlackRock consortium will gain control of more than 40 ports in 23 countries, including Mexico, the Netherlands, Egypt, Australia, and Pakistan.
The Panama Canal (see overview) is a vital trade route connecting the Atlantic and Pacific oceans, and the US is its largest user, accounting for roughly 70% of its shipping traffic. The US built and operated the canal from its opening in 1914 until ownership was transferred to Panama in 1999 under a treaty signed in 1977. Last year, the canal made nearly $5B in revenue. See its history here (w/video).
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