Panama City, February 24, 2026 — The Panamanian government has taken administrative and operational control of two major ports at both entrances of the Panama Canal from Hong Kong-based conglomerate CK Hutchison Holdings after the nation’s Supreme Court ruled the concession unconstitutional.
The ports — Balboa on the Pacific side and Cristóbal on the Atlantic side — were long operated by a subsidiary of CK Hutchison known as Panama Ports Company (PPC). The court’s ruling invalidated the firm’s contract, including a controversial 2021 extension, paving the way for state intervention.
Government Takeover and Temporary Operation
Under a government decree, the Panama Maritime Authority assumed control “for reasons of urgent social interest” to ensure uninterrupted operations of these critical terminals. The takeover includes movable property at the ports, such as cranes, vehicles and computer systems.
To maintain port services during the transition, international shipping companies have been appointed to manage operations temporarily:
APM Terminals Panama — a subsidiary of Denmark’s Maersk — will operate the Balboa terminal.
TIL Panama, part of the Mediterranean Shipping Company (MSC) group, will manage Cristóbal.
Panama says the interim management arrangement will continue while a new international tender for long-term contracts is prepared.
CK Hutchison’s Response and Legal Fight
CK Hutchison has strongly condemned the seizure, calling it “unlawful” and part of a government campaign against the company. The conglomerate has ceased operations at the ports and is pursuing international arbitration proceedings under rules of the International Chamber of Commerce, including potential legal action against temporary operators.
Geopolitical Implications
The move comes amid intensifying geopolitical competition between the United States and China over influence in critical global trade infrastructure. Former US President Donald Trump and US officials have repeatedly expressed concerns over perceived Chinese influence in the region, including assertions about control of assets linked to the Panama Canal.
A planned sale of the canal ports to a consortium including US investment firm BlackRock and maritime partners was previously halted after intervention from Chinese authorities, adding complexity to the dispute.
China has criticized Panama’s court ruling, with its Hong Kong and Macao Affairs Office warning of “heavy prices” and rejecting the decision as undermining investor confidence.
Significance for Global Trade
The Panama Canal is a vital corridor for global shipping, handling a significant share of container traffic between the Atlantic and Pacific Oceans. Control over its terminal ports is seen as strategically important in international trade and security discussions, especially given the ongoing rivalry between major world powers.