Panama Audits Chinese Firm Operating Major Ports at Canal Entrances
Hutchison Holdings' Subsidiary Under Review for Port Operations Handling 39% of Panama's Container Traffic
Panama City: The Panamanian subsidiary of the Hong Kong-based Chinese company Hutchison Holdings is undergoing an audit while operating two critical ports at the entrances of the Panama Canal.
According to the Panama Maritime Authority (AMP), the company, Panama Ports Company, managed 39% of the containers—equating to 3.7 million of the 9.5 million containers handled in 2024 at Panamanian docks.
The remaining 61% of container traffic was primarily controlled by three other privately-owned ports with American, Panamanian, Taiwanese, and Singaporean investments, which handled 28%, 16%, and 14% of the containers, respectively, based on twenty-foot equivalent units (TEUs).
Having secured a concession in 1997, Hutchison Holdings' subsidiary operates the Balboa and Cristóbal ports located at the Pacific and Atlantic entrances to the canal.
These ports alone accounted for the transit of 3.7 million containers during 2024.
The scrutiny of the company follows comments by former U.S. President Donald Trump about the perceived influence of Beijing over this strategic maritime passage, which channels approximately 5% of global maritime trade.
The audit, initiated by Panama's comptroller, examines whether the company has adhered to its concession agreement, extended in 2021 for another 25 years, including their income reporting, payments, and contributions to the state.
Marco Rubio, a senior U.S. diplomatic official, is expected to visit Panama soon, amid discussions suggesting that these ports might be used by China to potentially disrupt trade via the canal during diplomatic tensions with Washington.
However, all operational decisions concerning the canal are made by an independent Panamanian authority.
The Panama Canal, an 80-kilometer waterway built by the United States and opened in 1914, remains a pivotal route for global trade, with the United States, China, and Japan being its leading users.
According to the Panama Maritime Authority (AMP), the company, Panama Ports Company, managed 39% of the containers—equating to 3.7 million of the 9.5 million containers handled in 2024 at Panamanian docks.
The remaining 61% of container traffic was primarily controlled by three other privately-owned ports with American, Panamanian, Taiwanese, and Singaporean investments, which handled 28%, 16%, and 14% of the containers, respectively, based on twenty-foot equivalent units (TEUs).
Having secured a concession in 1997, Hutchison Holdings' subsidiary operates the Balboa and Cristóbal ports located at the Pacific and Atlantic entrances to the canal.
These ports alone accounted for the transit of 3.7 million containers during 2024.
The scrutiny of the company follows comments by former U.S. President Donald Trump about the perceived influence of Beijing over this strategic maritime passage, which channels approximately 5% of global maritime trade.
The audit, initiated by Panama's comptroller, examines whether the company has adhered to its concession agreement, extended in 2021 for another 25 years, including their income reporting, payments, and contributions to the state.
Marco Rubio, a senior U.S. diplomatic official, is expected to visit Panama soon, amid discussions suggesting that these ports might be used by China to potentially disrupt trade via the canal during diplomatic tensions with Washington.
However, all operational decisions concerning the canal are made by an independent Panamanian authority.
The Panama Canal, an 80-kilometer waterway built by the United States and opened in 1914, remains a pivotal route for global trade, with the United States, China, and Japan being its leading users.