The decision follows the publication in Panama’s official gazette of a Supreme Court ruling issued last month that found the concessions held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, unconstitutional. The terminals affected are Balboa on the Pacific side of the canal and Cristóbal on the Atlantic side.
Panama’s government said it had assumed control of the facilities and the assets required to keep them running, including cargo-handling equipment and operational systems, under an executive decree designed to ensure uninterrupted service while a new concession is prepared. The decree provides for a transition period during which operations continue under temporary management ahead of a new award process.
Under the interim arrangement, APM Terminals, part of the Maersk group, is set to operate Balboa, while Terminal Investment Ltd (TiL), MSC’s port operating arm, is set to run Cristóbal. Panama’s authorities framed the shift as a continuity measure rather than a permanent transfer of rights, with the government signalling that a new tender will follow within an 18-month window.
CK Hutchison rejected the move, saying PPC ceased operations at both terminals after the takeover, and described the executive decree as unlawful. The conglomerate said it was consulting legal advisers and has taken steps to pursue legal remedies, including arbitration, as it seeks to challenge the ruling and the government’s takeover of the terminals.
The dispute has become politically charged amid broader US-China tensions over strategic infrastructure and trade routes, with Panama caught in the middle. The court ruling and subsequent handover were widely interpreted by observers as a political win for Washington, which has argued that China’s influence over critical nodes of global trade should be curtailed. Beijing, for its part, has criticised Panama’s direction of travel and warned of consequences, while separate reporting has indicated China has urged a reassessment of business engagement with Panama in response to the ports dispute.
