In a major move for both global infrastructure and geopolitics, American investment giant BlackRock has reached an agreement to purchase two key ports at either end of the Panama Canal from the Hong Kong-based CK Hutchison. The $22.8 billion deal, announced on Tuesday (March 3, 2025), comes amidst mounting pressure from the US President Donald Trump, who has repeatedly criticized Chinese ownership of key canal operations.
Panama Canal’s Global Significance
The Panama Canal has long been one of the world’s most strategically important waterways, linking the Atlantic and Pacific Oceans. According to report in CNN, this canal serves as a vital artery for global trade, handling approximately 4% of the world’s maritime commerce. For Panama, the canal is essential to the economy, generating nearly $5 billion in profits in 2024 alone, according to CNN.
Historically, control over the canal has been a point of tension, particularly between the United States and Panama. After the canal was handed over to Panama in 1999 following a treaty with the US, it has remained under Panama’s administration. However, the rise of Chinese interests in port operations around the canal has led to renewed concerns, particularly under the Trump administration.
Trump during his presidency race raised alarms about China’s growing involvement in Panama’s port operations. He declared that “China is operating the Panama Canal,” and went so far as to suggest that the US might “take it back.”
This rhetoric sent both the US government and Panamanian authorities into action. Trump’s administration demanded Panama address the increasing Chinese presence, viewing it as a potential violation of the canal’s neutrality. Under this situation CK Hutchison, a Hong Kong-based conglomerate with Chinese ties, opted to sell its key assets, including the Balboa and Cristobal ports on either end of the canal.
About the deal
In response to the growing geopolitical pressure, BlackRock, alongside a consortium of partners including Global Infrastructure Partners and Terminal Investment Limited, has agreed to buy CK Hutchison’s operations in Panama. The $22.8 billion agreement marks a shift in the control of these critical ports. BlackRock, with its massive $11.6 trillion in assets, has increasingly positioned itself as a dominant player in infrastructure investments, and this deal only strengthens that position.
According to a report in Financial Times, BlackRock CEO Larry Fink, has termed the acquisition a strategic move to tap into the growing global demand for infrastructure assets. “These world-class ports facilitate global growth,” Fink stated in a press statement following the announcement. The deal also includes a controlling stake in 43 other ports worldwide, highlighting BlackRock’s expanding global reach. Importantly, the deal excludes any ports in China or Hong Kong, signaling a response to Trump’s concerns about Chinese influence.
CNN report says for Panama, the sale of its most strategically important ports to a US-backed consortium might ease the political tensions with the Trump administration, though questions about the long-term effects on Panama’s sovereignty remain. The deal could help maintain the country’s control over the canal while addressing external pressures, particularly from the US.
Ports such as Balboa and Cristobal are essential to international shipping, primarily functioning as transshipment hubs. Their acquisition by BlackRock and its partners could impact global shipping logistics, potentially influencing access, costs, and security considerations for companies that rely on these vital ports.