Panama hopes China COSCO Shipping resumes operations at Balboa Port

On Friday, March 13, the Minister of Panama Canal Affairs, Jose Ramon Icaza, stated that the Panamanian government hopes China COSCO Shipping will reconsider its decision not to use Balboa Port, located at the entrance of the Panama Canal. Earlier this week, a local newspaper, La Prensa, published an announcement from COSCO Shipping to its customers stating that the company has suspended operations at Balboa Port. COSCO Shipping did not respond to inquiries about the suspension of operations.

"The issue with COSCO Shipping came as a surprise to us," Icaza told reporters during an event, and pointed out that COSCO Shipping's cargo volume accounts for 4% of the total cargo volume at Balboa Port.

"Every shipment is important, and COSCO Shipping's shipments are obviously particularly important to us and to Panama. Of course, we hope they will reconsider their decision not to use Balboa Port."

Balboa Port is one of two ports at the center of a year-long dispute involving Washington, Beijing, and the Panamanian government. This move follows a January 1st ruling by the Panama Supreme Court that annulled the contract operated by a unit of Hong Kong-based CK Hutchison for the port. Last month, Reuters reported that the Office of the State Council for Hong Kong and Macao Affairs issued a statement condemning the Panama Supreme Court's decision to cancel the operating contracts of companies under CK Hutchison in the ports at both ends of the Panama Canal, calling the ruling "absurd, shameful, and disappointing," and stating that it would resolutely safeguard the legitimate rights and interests of Chinese enterprises.

CK Hutchison had proposed plans in March 2025 to sell 43 ports in 23 countries to a consortium led by MSC Shipping, which is run by BlackRock and the Italian Gianluigi Aponte family, including Balboa Port and Cristobal Port near the Panama Canal. The deal quickly became entangled in geopolitical tensions, with the United States expressing support because former President Trump had long called for the U.S. to strengthen control over the canal.

CK Hutchison said in July last year that it was negotiating with the consortium to allow a major Chinese "strategic investor" to join the bid. A source from Reuters confirmed that COSCO Shipping was identified as that investor.

When asked whether COSCO Shipping's withdrawal from Balboa Port might be a pressure tactic against Panama, Icaza said, "I don't want to speculate." Maersk's APM Terminal recently began temporarily operating the port for up to 18 months.

Source: rfi

Original: toutiao.com/article/1859583491019776/

Statement: This article represents the personal views of the author.