PANAMA CITY, Panama – The Panama Canal Authority (ACP) has formally initiated a comprehensive, year-long process to select operators for two new container terminals planned for the Atlantic and Pacific ends of the vital waterway. The move, announced on October 28, 2025, is designed to significantly boost Panama’s container capacity and solidify its role as a global logistics hub amid ongoing geopolitical tensions surrounding existing port facilities.
The development of the new terminals is a central part of Panama’s strategy to increase its annual container transshipment capacity by 5 million TEUs (twenty-foot equivalent units). Canal authorities position the project as critical for enhancing the competitiveness of Panama as an intermodal hub and responding to growing international pressure, particularly from the United States, concerning Chinese influence over key infrastructure.
Global Industry Leaders Attend Canal Presentation
The selection process gained immediate traction with a recent presentation attended by 22 of the world’s leading terminal operators and major container carriers. According to the Panama Canal Company, the list of participants reads as a “who’s who” of the global maritime industry.
Major terminal operators in attendance included APM Terminals, Cosco Shipping Ports, CMA Terminals, DP World, and PSA International. Also present were representatives from carriers such as CMA CGM, Maersk, MSC, Hapag-Lloyd, COSCO, and Zim. The Port of Houston also attended the session, highlighting the broad international interest in the project.
We are positioning this project to enhance the competitiveness of Panama as an intermodal hub and to increase our port capacity, while also responding to the strategic pressures from the United States, [Translated from Spanish]
said a senior official from the Panama Canal Authority.
Ambitious Timeline and Selection Process
The ACP envisions completing the entire selection process by the fourth quarter of 2026. The structured approach will include a prequalification phase for bidders, followed by detailed dialogues with the interested companies. In parallel, the authority will conduct comprehensive market and feasibility studies for each of the proposed terminal sites in Balboa, on the Pacific side, and Cristobal, on the Atlantic side.
These studies are intended to inform the final project plan and will be crucial for the ultimate selection of the concessionaire. The total estimated cost for developing the two new terminals is approximately $2.6 million. This expansion comes as Panama’s five existing terminals collectively handle more than 9 million TEUs annually.
Geopolitical and Legal Challenges Shape Strategy
The push for new terminal development occurs against a complex backdrop involving the canal’s existing facilities. The two terminals operated by Hong Kong-based CK Hutchison have become a focal point of geopolitical disputes between China and the United States. Former U.S. President Donald Trump has repeatedly asserted that China controls the Panama Canal, adding a layer of diplomatic tension to port operations.
Beyond geopolitics, a significant legal challenge is pending in Panama’s Supreme Court. The country’s attorney general has filed a suit asserting that the 25-year concession extension granted to CK Hutchison in 2021 is illegal because it was awarded through a no-bid process. Hutchison has defended its position, reporting that it is meeting all concession obligations and continues to invest in the operations.
Officials from the Panama Canal Company confirmed they are actively planning for the potential that the court voids the Hutchison concession. In such a scenario, the canal authority would step in as the interim operator to maintain supply chain continuity. They estimate a new, transparent bidding process for those terminals would take 12 to 18 months to complete.
We are planning for all potential outcomes, including the possibility that we may need to serve as the interim operator to ensure the stability of the global supply chain, [Translated from Spanish]
an APC official stated.
Potential Resolution Through Partnership
Despite the legal and political challenges, a resolution that avoids a complete concession termination remains possible. Earlier this year, CK Hutchison proposed selling its concession to a partnership led by U.S.-based investment firm BlackRock, with significant investment from MSC’s Terminal Investment Limited. Negotiations were also reportedly underway for COSCO to take a position in a new partnership structure for the terminal portfolio.
The launch of the new terminal selection process, coupled with the contingency planning for the existing Hutchison facilities, demonstrates the Panama Canal Authority‘s strategic effort to secure the long-term operational and commercial future of this critical global maritime hub. The coming year will be decisive in shaping the ownership and operational landscape of the Panama Canal’s port infrastructure for decades to come.