Cosco, China’s largest state-owned shipping company, is said to be discussing ways to participate in the consortium led by Terminal Investment Ltd. (TiL), the port investment arm of MSC Mediterranean Shipping Company. The group also includes US-based BlackRock and its infrastructure division, Global Infrastructure Partners (GIP).
According to Bloomberg, the inclusion of a Chinese stakeholder emerged as a possible solution after high-level talks between US and Chinese officials were held in Switzerland last month. Beijing has opposed the deal, particularly the transfer of the Panamanian terminals, viewing it as a threat to its global shipping interests.
As previously reported by Trans.INFO, the consortium’s current structure would see MSC acquire 41 of CK Hutchison’s 43 container terminals across 23 countries. The remaining two terminals—located at the Atlantic and Pacific entrances of the Panama Canal—would be jointly owned by BlackRock (51%) and TiL (49%).
The sale would mark a strategic reshuffle of control over vital port infrastructure. CK Hutchison, a Hong Kong-based conglomerate, has operated the Balboa and Cristobal terminals since 1998, with the concession extended for another 25 years in 2021. These ports are considered highly sensitive due to their position along a maritime route that handles roughly 3% of global trade.
The transaction, valued at more than $19 billion, has been under review by Chinese regulators since March. Panama’s government is also conducting its audit of the concessions. Despite delays, most notably missing an April target to finalise the Panama portion, the deal remains under active negotiation, with exclusivity between the parties set to expire in late July.
MSC, COSCO, CK Hutchison and BlackRock declined to comment on the status of the negotiations, Bloomberg reported.