- cross-posted to:
- world@quokk.au
- cross-posted to:
- world@quokk.au
In a statement announcing the business deal, Frank Sixt, co-managing director of CK Hutchison, said: “I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
BlackRock is one of the world’s largest asset management companies.
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They selling it to blackrock. Not like this will be any better.
Hong Kong billionaire to sell Panama Canal ports to US firm
headline is correct.
post title omitted a very crucial word.
Fixed
Hmm. I wonder if there might be a Jones Act repeal in the works? That would probably greatly increase the value of the Panama Canal, by making it more-viable for US East Coast-West Coast shipping.
kagis
Apparently there was some discussion of this, but Trump’s apparently expressed support for the Jones Act, for whatever value that has.
https://gcaptain.com/trump-signals-jones-act-policy-will-stay-the-course/
The article continues: “The re-election of Trump signals a continued commitment to the Jones Act, supporting a uniquely American industry that spans jobs, innovation, and security. In choosing Trump, the American people voted for a leader who recognizes that policies like the Jones Act aren’t outdated relics but vital pillars of U.S. prosperity and safety. For American workers, communities reliant on the maritime industry, and anyone invested in a strong, secure America, this election outcome is a win—plain and simple.”
Isn’t the Jones act so onerous that it basically had the opposite effect of killing the US shipping industry entirely? I think I read that somewhere a long time ago.
Well, it depends on what you mean by “the US shipping industry”.
It benefits US shipmakers (eliminates competition), US seamen (eliminates competition), and industries that compete with shipping like freight trains (eliminates competition).
It disadvantages ports and American people/companies who want things shipped cost-effectively. It’s bad for islands, like Hawaii, where it drives up prices.
I’d call “ports” some of the shipping industry, but also “shipmakers” and “seamen”.
If the Jones Act were to go away, we would probably move a lot more goods by water than we do today.
Right, so while it does have its intended protectionist and national security benefits, it’s at the cost of higher prices for everyone and thus a drag on the economy and subsidising the rail transport oligopoly.
Not sure how the Panama canal features into this tho, unless Trump follows through on annexing Panama, wouldn’t it still be a foreign port for the purposes of the Jones act? And isn’t that immaterial anyway when it’s used as a transit point?
Not sure how the Panama canal features into this tho, unless Trump follows through on annexing Panama, wouldn’t it still be a foreign port for the purposes of the Jones act? And isn’t that immaterial anyway when it’s used as a transit point?
Transiting the Panama Canal doesn’t count as moving goods to Panama.
The Jones Act makes it more expensive to move goods by ship between locations in the US. If it went away, we would move more goods by ship between the US East Coast and US West Coast. That would make the Panama Canal abruptly a lot more valuable.
EDIT: Oh, I see what you mean. Maybe they didn’t acquire any of the the infrastructure of the Canal itself, but just infrastructure for offloading stuff going to Panama, so ships transiting it wouldn’t use what they acquired. I don’t know that.
EDIT2: Yeah, looks like it:
https://www.cbsnews.com/news/blackrock-panama-canal-deal-ck-hutchison-trump/
In January, U.S. Sen. Ted Cruz, the Republican chair of the Senate Committee on Commerce, Science and Transportation, raised concerns that China could exploit or block passage through the canal and that the ports “give China ready observation posts” to take action. “This situation, I believe, posts acute risks for U.S. national security,” Cruz said.
So he’s raising the issue of China being near shipping moving through the Canal, not actually in its path. Probably right then.
Uh-huh…
