Panama Court Voids CK Hutchison Port Contracts, Casting Uncertainty Over Canal Terminals Sale

Panama’s Supreme Court has annulled key concession contracts held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based conglomerate CK Hutchison, throwing the future of major container terminals at the Panama Canal into doubt. The contracts, in place since the 1990s, allowed PPC to operate facilities at Balboa on the Pacific side and Cristobal on the Atlantic side of the canal, separate from the canal’s waterway operations. The court ruled that the laws underpinning the concessions were unconstitutional, potentially forcing Panama to overhaul the legal framework governing port operations and consider new tenders.

The decision complicates CK Hutchison’s proposed $23 billion sale of dozens of global ports — including the Panamanian terminals — to a consortium led by BlackRock and Mediterranean Shipping Company (MSC). PPC said it had not been formally notified of the ruling and described it as lacking legal basis, warning it could undermine legal certainty and threaten thousands of jobs tied to port activity. The company noted it had invested $1.8 billion in infrastructure and technology over nearly three decades and said it reserved the right to pursue national and international legal action, including possible arbitration.

The ruling unfolds against a backdrop of intensifying U.S.–China rivalry over strategic trade routes. U.S. President Donald Trump had supported the proposed sale as a shift toward greater U.S. control of key trading assets, while China signaled opposition and pledged to safeguard the interests of its companies. Analysts say the court’s decision may delay or reshape the transaction structure and could trigger a broader restructuring of port concessions in Panama. Maintaining uninterrupted operations at the terminals is seen as critical, as the canal handles around 5% of global maritime trade and serves as a vital transshipment hub.

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