The Supreme Court of Panama declared the concession for managing the key ports of the Panama Canal, held by Panama Ports Company – a subsidiary of Hong Kong's CK Hutchison Holdings since 1997 – unconstitutional.
The decision made on January 29 concerns a 25-year extension of the concession granted in 2021 and was made following the findings of an audit by the Panama Comptroller's Office, which reported financial violations, unpaid payments, and accounting errors.
The country's president, José Raúl Mulino, stated that after the formal termination of the concession, the ports would be transferred to the temporary management of the local subsidiary of the Danish logistics company A.P. Moller-Maersk. A new concession competition will be held later.
Panama Ports Company disagreed with the court's decision and stated that it reserves the right to legal protection in Panama and other jurisdictions.
In a statement, the company noted that the decision "lacks legal grounds and jeopardizes not only PPC and its contract but also the welfare and stability of thousands of Panamanian families who directly or indirectly depend on port activities, as well as the rule of law and legal certainty in the country."
The court's decision also provoked a sharp reaction from China and Hong Kong. Beijing expressed its readiness to take measures to protect the interests of the Chinese company, while the Hong Kong government criticized Panama's actions and called for respect for the spirit of contracts.
In 2025, CK Hutchison agreed to sell a controlling stake in the Panamanian ports and other assets to an international consortium that included the American fund BlackRock, but the deal was not realized due to objections from the Chinese government.
The Panama Canal is extremely important for the economy of Panama and global trade. It is a key supply route for LNG from the U.S., the largest exporter in the world, to countries in Northeast Asia such as Japan, South Korea, or China.
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