Panama Canal Launches Global Consultation Process for New Port Terminals on Both Coasts

The Panama Canal Authority has begun a consultation process with maritime industry representatives to identify potential partners for developing port terminals on both the Atlantic and Pacific sides of the waterway.

Following an approach similar to that used for its gas pipeline project, the authority convened representatives from companies with proven experience in container port operations and container shipping lines. Participants included APM Terminals, Cosco Shipping Ports, CMA Terminals–CMA, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine–Grupo Carrix, and Terminal Investment Limited, as well as representatives from major shipping lines including CMA CGM, ONE, Evergreen, Hapag Lloyd, HMM, Maersk Line, MSC, OOCL, COSCO, Yang Ming, the Port of Houston, and ZIM.

The consultation process will include a market and feasibility study for both terminals, followed by development of a general project plan leading to initiation of a special process to select a concessionaire. The selection will include a prequalification phase, an interaction and dialogue stage with prequalified participants, and finally, the selection of the concessionaire.

The final phase of the concessionaire selection is expected to conclude in the fourth quarter of 2026. “This process will be transparent and competitive, with participation anticipated by leading global companies,” the authority stated.

The process comes as U.S. President Donald Trump threatened this year to take over the Panama Canal, citing China’s growing influence. In response, Hong Kong-based CK Hutchison is moving sell its two Panama ports in a $22.8 billion deal with Blackrock and MSC that is delayed due to opposition from China,

Within the Panama Canal’s 2025–2035 strategic vision, container terminals are the most significant components of the canal’s supporting infrastructure, second only to the locks and navigation channels. An estimated investment of $2.6 billion is projected for both terminals, with an expected economic impact of between 0.4% and 0.8% of Panama’s GDP.

Approximately 8,100 jobs are expected to be generated during construction, and around 9,000 jobs once operations begin, including direct, indirect, and induced employment.

The goal is to increase container transshipment capacity by 5 million TEUs per year, strengthen Panama’s position as one of the world’s most competitive intermodal hubs, and expand port capacity in the interoceanic area, which is currently operating near its limit.

“There is a large demand for facilities and terminals,” said Ricaurte Vasquez, head of the waterway, at a conference.

The port development is part of an $8.5 billion capital spending plan over seven years, which also includes a new water reservoir and transportation improvements. “We are coming into the game of port terminals,” Vasquez confirmed, adding that the authority intends to use newer crane technology to move cargo more efficiently and compete with facilities like Colombia’s Port of Cartagena.

The terminals will support infrastructure including a 76-kilometer pipeline designed to transport propane, butane, and ethane between the Gulf of Mexico and Northeast Asia, with capacity of 2.5 million barrels per day. The pipeline project aims to free up canal capacity without additional water usage, critical following recent droughts.

“Under the current administration in the US, energy products will have a very high priority,” Panama Canal Administrator Ricaurte Vasquez stated. “This is a window of opportunity that Panama must capture to ensure we remain relevant for international trade.”

The pipeline responds to operational challenges from the 2023-2024 El Niño drought, which reduced canal transits due to low water levels. Favorable rainfall this year has allowed the canal to maintain a 50-foot draft, likely continuing through end of 2025, a marked improvement over the previous two years when severe drought forced transit limitations and water-saving techniques.

The project comes as the Panama Canal is currently experiencing a revenue boost due to U.S. tariff policy, as shippers rush to import before duties take effect. The authority expects this surge to subside beginning this quarter depending on U.S. tariff policy, forecasting revenue of around $4.4 billion, below the approximately $5 billion anticipated for the current year.