Singapore International Port Group may participate in the $3.4 billion new terminal project at the Panama Canal | Lianhe Zaobao

PSA International may be interested in participating in the new container terminal project at the Panama Canal, with a project value of USD 2.6 billion (approximately SGD 3.4 billion).

According to a statement issued by the Panama Canal Authority on October 27, it plans to develop two new container terminals at both ends of the Atlantic and Pacific, and has initiated a consultation process with representatives from the maritime industry to identify potential partners for the project. The port authority is one of the port operators attending the relevant project meetings.

The statement mentioned that, in addition to the port authority, companies invited to the meeting include APM Terminals, a subsidiary of Maersk, DP World, COSCO Shipping Ports, and Terminal Link, among other giants.

The Straits Times inquired whether the port authority intends to compete for this project, but it declined to comment.

The Panamanian authorities stated that the project is part of the country's strategic vision from 2025 to 2035, aimed at enhancing the canal's throughput capacity and maintaining its competitiveness as a global trade route.

In addition to port operators, major shipping companies such as Maersk, Mediterranean Shipping Company, CMA CGM, COSCO Shipping, Evergreen Marine, and Yang Ming Marine Transport also participated in the meeting.

The Panamanian authorities have initiated a consultation process with representatives from the maritime industry to identify potential partners for the project. Representatives from the port authority attended the relevant meetings. (Source: Panama Canal Authority website)

Previously Selected to Develop Pacific Side Terminal but Ultimately Did Not Bid

According to a statement released by the authorities earlier, in addition to the two terminals, the strategy also includes a 76-kilometer long liquefied natural gas pipeline. Once completed, the project connecting the two oceans could transport up to 2.5 million barrels of energy products daily. The Corozal Port on the Pacific side will also be integrated into a land logistics platform and connected by road and rail.

Reports indicate that the Panamanian authorities planned to develop Corozal Port in 2016. Four companies, including the port authority, received preliminary approval at that time. However, none of the shortlisted companies ultimately submitted bids, causing the project to be shelved.

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The Straits Times also inquired with the Port Authority Group about this incident, which similarly declined to comment.

The Panamanian authorities stated that market and feasibility studies will be conducted on the two terminals before formulating the overall project plan. Subsequently, the process will enter the pre-qualification and dialogue stages, ultimately determining the concessionaire. "The final stage of selection is expected to be completed in the fourth quarter of 2026."

It is understood that the new terminal will enable the canal to handle an additional 5 million standard-sized containers annually. This project is expected to bring economic benefits equivalent to 0.4% to 0.8% of Panama's gross domestic product. Construction and operation are expected to create over 17,000 direct, indirect, and derived jobs.

The Port Authority Group has been operating in Panama. According to company information, it operates a terminal on the Pacific side with an annual throughput capacity of 2 million standard-sized containers.

It obtained the concession in 2007, constructing and operating the terminal on the site of the former U.S. Navy base, and began container ship operations in 2012. This terminal launched an expansion plan in 2015 and achieved a record throughput of 1.4 million standard containers in 2024.

In recent years, the rights to operate ports in Panama have become a focal point of attention. In March of this year, CK Hutchison Holdings announced that it had reached a principle agreement with a consortium led by U.S. BlackRock Group to sell CK Hutchison's rights to operate 43 ports in 23 countries, including Panama.

However, Chinese authorities pressured CK Hutchison on grounds of national interest.

Subsequently, China’s largest shipping company, the state-owned China COSCO Shipping Group, reportedly joined the BlackRock-led consortium. Sources indicate that China COSCO Shipping Group is applying for veto power or equivalent authority within the consortium to prevent any decisions detrimental to China's interests