Panama Canal Plans Competitive Bid for New Ports

CIUDAD DE PANAMÁ, Panama — The Panama Canal will soon consult with potential companies to launch a competitive bidding process in the first quarter of next year for the construction and operation of two new ports within its area, a source involved in the preparations stated.

The addition of these ports is part of a broader expansion plan organized by the canal’s administration to enhance cargo handling services, including transshipment, storage, and gas transportation, while ensuring water supply for its operations.

This project emerges as President José Raúl Mulino‘s government aims to finalize a 25-year concession with Hong Kong-based CK Hutchison to operate two key ports at either end of the canal, amid criticism of the contract’s terms.

CK Hutchison indicated on Thursday that an agreement worth $22.8 billion with a group led by BlackRock and shipping firm MSC to sell most of its global port business, including the two ports in Panama, has a “reasonable chance” of being realized.

The Panama Canal Authority (ACP) did not immediately respond to a request for comments. Previously, ACP officials hinted at plans to invest about $8.5 billion over the next five years to modernize and expand infrastructure.

A key project, which includes constructing a large dam to contain the Indio River and create a new reservoir, will be discussed in the Supreme Court of Panama after affected communities filed a lawsuit against it.

Administrator Ricaurte Vásquez told reporters on Thursday, “We are seeing an enormous demand for port facilities and terminals,” but he did not provide additional details.

Another bidding process for constructing a liquefied petroleum gas (LPG) pipeline within the canal zone is also in preparation, which could be launched next year, the source added.