Panama Government Revokes

CK Hutchison's Operating Rights for Two Key Panama Canal Ports

Panama's government issued a decree on February 23, 2026, formally revoking the concession rights of Hong Kong-based CK Hutchison Holdings (長和集團) to operate two strategic ports at the entrances of the Panama Canal. The Panama Maritime Authority (Autoridad Marítima de Panamá) has been authorised to take immediate control of the facilities, citing "urgent social interest."

The ports affected are Balboa (on the Pacific side) and Cristóbal (on the Atlantic side), both managed since the 1990s by CK Hutchison's subsidiary, Panama Ports Company (PPC). PPC's original 25-year concession was extended in 2021 for another 25 years until 2047, but Panama's Supreme Court ruled in late January 2026 that the underlying law and contract were unconstitutional, citing disproportionate benefits to the company and harm to national fiscal interests.

Following the court's final ruling—published in the official gazette—the government moved to occupy the ports and assume control of all related assets, including cranes, vehicles, computer systems, and software. Authorities assured that port operations would continue uninterrupted to maintain trade flow through the vital Panama Canal, with job stability for workers also prioritised.

In the interim period before a new long-term operator is selected, Denmark's A.P. Moller-Maersk subsidiary APM Terminals will temporarily manage the terminals under a transition arrangement.

CK Hutchison has strongly opposed the developments. On February 4, 2026, the company announced it had initiated international arbitration proceedings against Panama under the relevant concession agreement and ICC rules, describing the Supreme Court's decision and subsequent government actions as inconsistent with the legal framework. It reserved the right to pursue further legal remedies.

China's Ministry of Foreign Affairs, responding earlier in February, criticised the Supreme Court's ruling as disregarding facts, breaching trust, and severely infringing on the legitimate rights of Hong Kong enterprises. Beijing reaffirmed its commitment to protecting Chinese companies' lawful interests abroad.

The ports are among the most important container facilities in the Panama Canal system, handling significant global trade volumes. The revocation follows heightened geopolitical attention on the canal and follows CK Hutchison's earlier aborted plan to sell its global ports business—including these assets—to a consortium involving MSC and BlackRock, which faced intervention amid US-China tensions.

No immediate comments from CK Hutchison or the Panamanian government were available beyond the decree and prior statements, but the move marks a major shift in control of these critical infrastructure assets.