NASSAU, BAHAMAS- CK Hutchison’s announcement that it would sell 80 percent of its port division to a consortium consisting of BlackRock, Global Infrastructure Partners (GIP), and Terminal Investment Limited (TiL) for $22.8 billion has raised concerns, particularly regarding its impact on Freeport’s future.
The deal, which encompasses 43 ports across 23 countries, does not involve Hutchison’s Hong Kong, Shenzhen, or other Chinese ports. However, it is feared that MSC—one of the key players in the transaction—may soon control both the Freeport Harbour Company (FHC) and Freeport Container Port (FCP). This has sparked anxiety among local business leaders and investors in Grand Bahama.
While the deal is expected to significantly boost MSC’s position in the global terminal operator rankings, fears about excessive market concentration have surfaced. With terminals across key regions, including Panama, Rotterdam, and Spain, the consolidation of power within one company could disrupt the competitive landscape. In Panama, for instance, TiL’s existing stake in the PSA Panama International Terminal may now overlap with Hutchison’s Balboa terminal, potentially creating a monopolistic environment.
The deal comes amid growing tensions between the U.S. and China, further complicated by concerns over Chinese holdings in critical infrastructure across the Americas. The Trump administration has expressed concerns about China’s growing influence in strategic sectors. Though Hutchison is a Hong Kong-based company, its connections to China have fueled debates about the geopolitical implications of such acquisitions, especially in sensitive markets like the Americas.
BlackRock’s Chairman and CEO, Larry Fink, praised the deal as a prime example of the firm’s ability to secure long-term infrastructure investments for clients. “These world-class ports facilitate global growth,” he stated, underlining the strategic nature of the agreement. Fink also noted BlackRock’s deep connections with major players like Hutchison and MSC, which position the firm as a key partner in global infrastructure.
GIP’s Chairman and CEO, Bayo Ogunlesi, expressed similar enthusiasm, highlighting GIP’s extensive experience in managing ports. He emphasized that the partnership with MSC and TiL would allow the consortium to maintain a focus on keeping these ports competitive, efficient, and service-oriented.
Diego Aponte, Chairman of TiL and President of MSC, echoed the positive outlook, noting the longstanding relationship between MSC and Hutchison Ports. “We have a very high regard for the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our family,” he said, reiterating the commercial viability of the investment.
However, Frank Sixt, Co-Managing Director of CK Hutchison, urged caution. He acknowledged that the deal was the result of a competitive bidding process and would be beneficial for shareholders, but stressed that investors should “exercise caution” in dealing with CK Hutchison shares until the deal was finalized. Sixt also clarified that the transaction was “purely commercial” and unrelated to political concerns, such as those surrounding Panama’s ports.
With MSC potentially controlling both the FHC and FCP, some investors worry about the future growth of Grand Bahama.
