A $23bn sale of ports by CK Hutchison has raised concerns in the logistics industry that the deal could hurt competition and disadvantage rivals by making the world’s biggest shipping company the top operator of container terminals globally.
The deal to sell 80 per cent of the Hong Kong conglomerate’s global ports portfolio to a subsidiary of the Mediterranean Shipping Company would hand the Swiss-Italian shipping line control over a critical amount of the world’s port infrastructure, some industry analysts and executives fear.
The impact of the sale is “massive”, said one port industry executive, with the proposed MSC agreement raising “significant concerns” among rival shipping lines about their long-term access to port infrastructure.
A consortium led by port operator Terminal Investment Limited — majority-owned by MSC — together with BlackRock’s infrastructure unit GIP, in March, agreed to buy stakes in 43 ports in 23 countries.
Hutchison struck the deal, which also includes the takeover of two Panamanian ports and already faces scrutiny by the Chinese government, following complaints from President Donald Trump that China was “running the Panama Canal”.
If approved by regulators, it will allow MSC — owned by the billionaire Aponte family — to leapfrog its main competitors in the ports business to become the world’s largest container terminal operator with a projected 8.3 per cent of global share, according to maritime consultancy Drewry.
“Considering [MSC’s] shipping business, this [deal could] potentially lead to reduced competition and higher barriers to entry for other players,” said Kun Cao at consultancy Reddal.