Arnout Nuijt

The sale of CK Hutchison’s two Panama terminals to US investor Blackrock grabbed headlines yesterday across the US, leading to a discussion whether this deal amounted to a Trump win or not. Yet the bigger picture emerging from this deal is huge and it – if all goes to plan – will alter the balance of power among international terminal operators and shipping companies. It will also be a big step towards reducing China’s strong position in the European ports sector.

Li Ka-shing, CK Hutchison’s owner, has in fact struck a mega deal with BlackRock and Mediterranean Shipping Co (MSC), selling 80% of its ports division at a price tag of almost $23bn. The deal includes not only the two Panama Canal terminals, but a total of 45 terminals spread out over Europe, the Middle East, Central America, Australia and South East Asia. Chinese and Hongkong terminals however are excluded from the deal. It should be noted that the remaining 20% of CK Hutchison’s ports division is owned by PSA of Singapore (a share that last year was reported as being up for sale).

For Europe this would mean that CK Hutchison’s terminals in Barcelona, Gdynia, Harwich/Felixstowe, a string of inland ports in the Rotterdam/Antwerp hinterland and the Rotterdam ECT and Delta terminals will change hands. No doubt this deal will face scrutiny from European and national authorities and we may still expect some changes to shareholder arrangements of individual terminals or the resale of one or two assets. It is also unclear how this deal would affect the planned large MSC terminal for Rotterdam’s Maasvlakte, a project that heavily involved CK Hutchison. Though the new mega terminal, with a potential turnover of up to seven million TEU was announced in 2022, construction was delayed last year.

But the big news of course is the fact that the sale of CK Hutchisons international port operations to a European/US joint venture is an important step in reducing China’s influence in the European port and logistics sector. It also shows that decent Transatlantic cooperation is still alive, feasible and the only way forward.

One could argue that the retreat of Chinese owners from the European and UK port sector goes hand in hand with the rise of US ownership. At this point in history many Europeans have their doubts if this development is welcome. Yet, we do not know the origins of the funds used by Blackrock, a private investor, to finance this deal. On the other hand, if a US investor builds up an important stake in European ports in the face of heavy tariffs and in the middle of a Transatlantic row about security, should we be still that afraid of a Trump-induced trade war?

(originally published on Linkedin on March 5th, 10.30 hrs CET)