According to AFP on the 26th, despite US threats to regain control of the vital trade route of the Panama Canal, the Panama Canal Authority stated on the 25th that the canal remains open to all interested parties regarding the construction of two new ports. The Authority revealed that Chinese companies are interested in bidding.
In August this year, multiple foreign media outlets reported that the Panama Canal Authority planned to sell the operating rights of two yet-to-be-built ports to introduce more operators. The Wall Street Journal cited the introduction by the head of the Panama Canal Authority, Vásquez, stating that the two ports to be sold are located on both sides of the Panama Canal. The winning bidder will be responsible for building the port facilities and will obtain a 20-year operating right.
According to AFP on the 26th, the head of the Panama Canal Authority, Vásquez, stated regarding the construction of the new ports, “We must open the bidding to all interested parties and seek the broadest possible competition.” He added that all bidders will bid on an equal basis. The report stated that companies interested in bidding include Orient Overseas Container Line, COSCO Shipping (Hong Kong) Co., Ltd., Singapore’s PSA International Pte Ltd, among others.
Earlier this year, the US government claimed that China controls the Panama Canal waterway and threatened to “take back” the canal. When asked by the media “if the project is awarded to a Chinese company in the future, would it exacerbate tensions with the United States,” Vásquez declined to speculate.
AFP reported that the Panama Canal Authority has begun meeting with interested parties to prepare for the bidding process. The Authority plans to award the contracts for these two terminals by the end of 2026 and commence operations in 2029.
Reuters previously quoted sources as saying that the bidding activity will start in the first quarter of next year. The report stated that the two new ports are part of the expansion plan being advanced by the Panama Canal Authority. This plan aims to enhance the comprehensive service capabilities of the ports, including cargo transshipment, storage, and the simultaneous construction of natural gas pipelines and freshwater supply facilities required to support operations. To this end, the canal management plans to attract approximately $8.5 billion in investment over the next five years for updating and expanding infrastructure.
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