Panama urges Cosco to lift its suspension at Balboa port, highlighting the company's significant role in cargo transshipment amid geopolitical tensions.
Panama has asked Chinese shipping giant Cosco to reconsider its suspension of operations at Balboa port, reports Hong Kong's South China Morning Post.
Minister for Canal Affairs Jose Ramon Icaza stated that the decision caught the government by surprise, noting that Cosco accounts for four percent of cargo transshipped at Balboa. He described the volume as significant and urged the company to return.
Cosco, which owns one of the world's largest tanker fleets, announced the suspension in a local newspaper without providing reasons. Balboa, located at the entrance of the Panama Canal, handled 10 million containers last year.
The move comes amid geopolitical tensions surrounding Hong Kong's CK Hutchison Holdings, whose contract to operate Balboa and Cristobal ports was annulled by Panama's supreme court in January. CK Hutchison had planned to sell 43 ports in 23 countries, including Balboa and Cristobal, to a consortium led by BlackRock and MSC.
The deal drew support from Washington but faced criticism from Beijing, prompting CK Hutchison to confirm negotiations with a Chinese strategic investor, later identified as Cosco.
