Panama’s highest court has revoked port operation agreements held by a unit of CK Hutchison, ruling them unconstitutional. The decision puts at risk the company’s plans to divest its global port assets and marks a shift in regional control, with notable implications for strategic influence in Central America.
The Supreme Court of Panama announced late Thursday that the legal terms granting Panama Ports Company (PPC) control over the Balboa and Cristóbal ports were unconstitutional, effectively nullifying the company’s concession. The court indicated the verdict followed substantial consideration, but it did not elaborate on future administrative or legal steps.
PPC, a subsidiary of Hong Kong-based CK Hutchison, has managed container terminals at both the Pacific and Atlantic sides of the Panama Canal since the 1990s, operating independently from the canal’s authority.
The ruling threatens the progression of CK Hutchison’s pending $22.8 billion transaction to sell numerous port holdings—including the Panamanian terminals—to a consortium led by BlackRock and Mediterranean Shipping Company (MSC).
This outcome is viewed as aligning with Washington’s security objectives in Latin America, as the United States seeks to counter China’s regional investments and strategic reach. About a year ago, President Donald Trump warned of possible U.S. intervention in the canal’s management, asserting its importance to national interests and describing it as influenced by Chinese companies.
Following the court’s announcement, PPC stated on Friday that it had not yet been formally informed of the decision and expressed the view that the judgment diverges from established legal agreements permitting its port operations.
A spokesperson from China’s Ministry of Foreign Affairs also responded, describing the verdict as inconsistent with Panama’s existing laws regarding franchise approvals. The spokesperson indicated that the affected companies would pursue all available remedies, including potential legal action.
