The 111-year-old Panama Canal opened on August 15, 1914. The SS Ancon was the first ship to transit through the canal, taking its voyage from the Atlantic Ocean to the Pacific Ocean in a time span of 10 hours. The Panama Canal expansion project, which included a third set of locks, was completed in May 2016.
The new locks allow larger ships, known as New Panamax ships, to pass through the canal. The Panama Canal was built to provide a route between the Atlantic and Pacific Oceans, financial efficiency, and timely delivery of shipping goods. The canal truncates the distance ships need to travel between the two oceans.
Before the canal, ships had to sail all the way around South America’s southernmost tip, which was a hazardous and lengthy route. The canal provides a feasible way to haul goods between the two oceans. A Hong Kong-based multinational has agreed to trade its major shareholding in a subsidiary that operates ports near the Panama Canal to a consortium including BlackRock, effectively putting the ports under American control after President Donald Trump charged them with Chinese interference with the operations of the strategic waterway.
CK Hutchison Holding announced on Tuesday that it will sell its entire stake in Hutchison Port Holdings and Hutchison Port Group Holdings to a consortium led by BlackRock, in a deal worth approximately $23 billion, including $5 billion in debt. The acquisition will grant the consortium control over 43 ports across 23 countries, including key facilities at the Panama Canal, such as the ports of Balboa and Cristobal.
The portfolio also spans ports in Mexico, the Netherlands, Egypt, Australia, Pakistan, and other locations. The transaction, subject to approval by the Panamanian government, excludes interests in ports operated by a trust in Hong Kong, Shenzhen, and South China, as well as other Chinese ports.
