The Panama Canal Authority (ACP) wants to raise competition with two new ports, due to tensions over the two existing ports and who controls them, and a rise in demand on the waterway.
Since January, US President Donald Trump has made it a promise to “retake” the waterway from China’s alleged control. It is not accurate that China operates the canal, although Chinese companies are involved in port operations, fuelling the clash over the port operations and the prompts from Trump-supporting senators which urged Panama’s government to cut alleged ties with China. The Panama Ports Company is owned by Hong Kong firm CK Hutchinson Holdings and manages two large container terminals on the canal.
In March, after the claims made by the Trump administration, Hong Kong firm CK Hutchinson Holdings came to an agreement to sell its two ports to American asset management firm BlackRock. However, this deal has since stalled due to further geopolitical tensions with China.
Ricaurte Vásquez Morales, CEO of the ACP, previously warned that the BlackRock deal would risk the canal’s neutrality. Now, after a recent meeting with the United Nations Security Council, he has told the Wall Street Journal: “We need to boost container capacity and bring in more players for an equal playing field.”
He said the facilities and terminals are experiencing significant demand, and that a broader expansion strategy is necessary to enhance services at the canal. The Panama Canal saw a total of 1,012 transits in July 2025, an 8% increase from June, according to a recent Lloyd’s List report.