Panama Canal set to enter ports business as Trump-China feud simmers

Panama Canal to enter ports business as Trump-China feud simmers. The Panama Canal is preparing to enter the port operations sector launching plans for two new terminals, one on the Atlantic and one on the Pacific coast, as part of a broader $8.5 billion infrastructure push. The move comes at a time of heightened geopolitical tension with the U.S. scrutinizing Chinese influence in the region. Recaurte Vasquez, head of the Panama Canal Authority, confirmed the plans during an interview Monday in New York, stating, “We are coming into the game of port terminals.” The terminals which will connect to a new liquefied petroleum gas pipeline, will be owned by the Canal Authority but operated by a third party. 

The initiative is part of a long-term investment strategy that includes the LPG pipeline, a new water reservoir and improved road infrastructure. The Canal Authority aims to use advanced crane technology to boost cargo efficiency and compete directly with regional leaders like Colombia’s modern Port of Cartagena. Panama’s existing ports run by Panama Ports Co. a subsidiary of Hong based CK Hutchison Holding Ltd are outside the Canal Authority’s jurisdiction and operate with aging equipment. These terminals were concessioned in 1997 and are now facing increased scrutiny from both Panamanian officials and foreign observers. 

In recent months, U.S. President Donald Trump has voiced strong concerns over Chinese influence in Panama, even falsely claiming Beijing controls the canal. Panama's President José Raúl Mulino has repeatedly defended the waterway’s sovereignty, affirming it is fully under Panamanian control.