Panamanian authorities on Tuesday announced an US$8.5 billion plan to modernise and expand the Panama Canal over the next decade, while sidestepping questions on whether Hong Kong-based CK Hutchison or others seen as having links to China could join future projects amid US concerns about Beijing’s influence over the waterway.
Hutchison Ports, a unit of CK Hutchison, has managed terminals in Balboa and Colon – on opposite ends of the trade channel – since the 1990s. Its role has drawn sharp criticism in Washington, where lawmakers and members of US President Donald Trump’s administration see the company as a proxy for Beijing’s influence over the canal.
In his inauguration speech, Trump also vowed to reclaim US control of the Panama Canal through force if necessary, alleging that Panama has given China excessive operational influence.
Panama’s “Vision 2025–2035” strategy sets out four priorities: a new reservoir on the Indio River, a 76-kilometre pipeline for liquefied petroleum gas, new container terminals and the expansion of logistics corridors.
Canal administrator Ricardo Vazquez Morales said the projects aim to keep the route competitive and aligned with global trade shifts.
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Why the US is worried about China’s growing influence in South America
Why the US is worried about China’s growing influence in South America
Vazquez pointed to rising flows of propane, butane and ethane exported from the US Gulf coast to China, Japan, South Korea, Vietnam and other Asian destinations. Demand for such energy products is expected to double within ten years, he said, warning that Panama could lose business to rival routes without new capacity.
