Hutchison Whampoa says it has taken control of two ports on the Panama Canal, in the company's second overseas port deal in a week.
The franchise, which began on Saturday, was awarded to Hutchison Port Holdings (HPH) through a newly created firm, the Panama Ports Co, by Panama's Ministry of Commerce and Industry.
Under terms of the deal, which covers the twin ports of Cristobal and Balboa, HPH will pay US$22.2 million in annual rent. Hutchison will also make a one-off lump-sum payment of $10 million for the purchase of existing equipment at the ports.
The government's port authority will receive 10 per cent of gross revenues and a 10 per cent shareholding in the Panama Ports Co.
Over the course of the concession, Hutchison faces a rental bill of $555 million. It declined to say how much it expected to make over the lifetime of the contract.
On Wednesday, Hutchison said it had signed a joint-venture agreement to build and operate a port at Bojonegara, in Banten Bay, near the Sunda Straits in Indonesia.