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Panama Seizes Canal Ports from HK Firm
24 Feb
Summary
- Panama annulled CK Hutchison's canal port contracts.
- Maersk and MSC appointed as interim operators.
- Hong Kong protested Panama's seizure of the ports.
Panama has formally seized control of two critical port terminals, Balboa and Cristobal, which are vital to the Panama Canal's operations. The government annulled the concessions previously held for over two decades by Panama Port Company, a unit of Hong Kong's CK Hutchison. This move follows a recent Supreme Court decision that declared the contracts unconstitutional.
As of February 24, 2026, the Panamanian government has assumed direct control of these port assets to maintain cargo flow. European shipping giants APM Terminals, owned by Maersk, and Terminal Investment Limited, backed by MSC, have been appointed as the interim operators for the Balboa and Cristobal terminals, respectively. A new concession process is slated to be completed within the next 18 months.
This development has escalated geopolitical tensions, with China expressing strong opposition and warning Panama of potential political and economic repercussions. Hong Kong's government has also registered strong protests, asserting its commitment to defending the overseas interests of its corporations. CK Hutchison has deemed the executive decree unlawful and has initiated arbitration proceedings.
