Hong Kong-based conglomerate CK Hutchison Holdings on February 19, 2026, called on the Panamanian government to open talks aimed at allowing its subsidiary to keep running two key ports at the ends of the Panama Canal. The request came from Alejandro Kouruklis, spokesperson for Panama Ports Company, the Hutchison unit that has operated the Balboa and Cristobal terminals since 1997. He made the appeal during an interview on Panamanian station Radio Red.
Panama’s Supreme Court struck down the company’s concession contract as unconstitutional, citing provisions that granted excessive privileges and tax breaks to the operator at the expense of the state.
The ruling has sparked a dispute over the future of the ports, which handle a significant share of container traffic through the canal. Panamanian authorities responded by designating APM Terminals, a subsidiary of Danish shipping firm A.P. Moller-Maersk, to manage the facilities temporarily until a new concession can be awarded.
This development underscores growing tensions in Latin America over foreign investment in critical infrastructure, particularly amid U.S. concerns about Chinese influence in strategic trade routes. The Panama Canal, linking the Atlantic and Pacific oceans, carries about 5% of global maritime trade and roughly 40% of U.S. container shipments.
Kouruklis emphasized the company’s flexibility in negotiations. “We request that there be a roundtable discussion between CK Hutchison and representatives of the executive branch to seek a reasonable solution,” he said. He added that Hutchison is prepared to renegotiate “absolutely everything” in the invalidated agreement.
The spokesperson warned that abrupt changes could disrupt operations, potentially halting container movements and vessel services at Balboa on the Pacific side and Cristobal on the Atlantic. He argued that insurance coverage might not apply under such circumstances, leading to broader supply chain issues.
CK Hutchison has already taken legal steps to challenge the court’s decision. Earlier this month, the company initiated international arbitration proceedings against Panama, claiming the ruling violates investment protections. It strongly disputes the unconstitutionality finding and seeks extensive damages.
Earlier, CK Hutchison notified Maersk that any unauthorized takeover by APM Terminals would result in damages and trigger legal action against the Danish group. Maersk has stated it is not involved in the ongoing legal processes and would only step in to ensure continuity if directed by Panamanian authorities.
The original concession stemmed from Law 5 of January 16, 1997, which allowed Panama Ports Company to develop, build, operate, and manage the terminals. An automatic 25-year extension was approved in 2021, but Panama’s comptroller general challenged it after an audit revealed alleged irregularities, including unpaid fees and unauthorized sub-concessions.
The Supreme Court, after deliberation, invalidated the law, its amendments, and the extension. The decision is final and non-appealable, but it requires formal publication to take effect. Panamanian President José Raúl Mulino has assured that port operations will continue without interruption during the transition. The government has conducted site visits and demanded access to records as part of preparations.
The United States built the 50-mile canal and managed it until handing control to Panama on December 31, 1999, under the Torrijos-Carter Treaties. U.S. President Donald Trump has repeatedly claimed Chinese entities control the waterway, threatening U.S. intervention to reclaim it. Panama has consistently rejected these assertions, affirming its sovereign authority.
China’s foreign ministry has criticized the court ruling, vowing to protect the legitimate interests of Chinese firms. Beijing has warned Panama of consequences, including potential halts to new projects. The ports in question processed about 38% of Panama’s nearly 10 million containers in 2025, making them vital for regional logistics. Disruptions could affect trade flows between Asia, the Americas, and Europe.
Arbitration could take years to resolve, according to legal experts. In the meantime, Panama plans to launch a bidding process for a new long-term operator once the transition stabilizes. Panamanian officials have set no specific timeline for the handover to APM Terminals, pending the ruling’s formal enforcement. CK Hutchison remains committed to maintaining services while pursuing remedies.
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