In recent days, there has been a significant amount of news in the trade and national press about Hutchison reaching a preliminary agreement to sell a considerable number of their port terminal business, even the usually reserved “Lloyds List” referred to it as a “blockbuster deal.”
A consortium comprising shipping line MSC’s Terminal Investment Limited (Til) arm and US investment fund BlackRock-TiL is to acquire an 80% stake in a clutch of 43 ports worldwide from Hong Kong’s CK Hutchison, including Felixstowe, the UK’s main container hub. The $22.8 billion deal covers CK Hutchison’s entire 80% stake in Hutchison Port Holdings including ports and terminals in 23 countries worldwide. In the UK, the ports of Felixstowe, Harwich and Thamesport are included in the deal, along with Hutchison’s major terminal operations in Europe including Rotterdam. Also, it has been announced that PSA are seeking to sell their 20% shareholding in Hutchison Port Holdings. It is anticipated that the final deal is expected to be signed by 2 April 2025.
Much of the news has focussed on the politics of the sale of CK Hutchison’s assets in the Panama Canal. Under the terms of the preliminary deal, the Black Rock-TiL Consortium (BRTC) will acquire a 90% stake in Panama Ports Company (PPC) including the ports of Balboa and Cristobal. PPC had been under pressure from President Trump who has claimed that Hutchison ownership of the ports gives control of the Canal to China and had threatened to seize it, although a Hutchison spokesperson denied that the sale was due to political pressure. Hutchison’s 17 port units in Hong Kong and the Chinese mainland are not included in the sale, which probably would have been politically unacceptable to Beijing.
From BIFA Members viewpoint, what does this change in ownership mean for the ports being sold in the UK? MSC is a carrier that operates independently of any shipping alliance and this takeover significantly strengthens their terminal business both globally and in the UK. Local business leaders seem to have given the takeover a cautious welcome describing it as having a “neutral to positive impact.” However, it does mean that important infrastructure upgrades to the Ely/Haughley rail junctions and strategic roads network become ever more important.
The president of the MSC Group, Diego Aponte said, “We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our larger family.”
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