Panama on Monday took over operations of container terminals at the Panama Canal, ending more than three decades of management by China.
Hong Kong-based CK Hutchison Holdings Limited in a release said that it had been informed that Panamanian authorities made direct
physical entry into the terminals at Balboa and Cristobal operated by subsidiary Panama Ports Company, S.A.
The state took over administrative and operational control of PPC’s terminals at the ports, barring representatives of PPC from the property.
The takeover follows a ruling on Jan. 29 by Panama’s Supreme Court that Hutchison’s concession was unconstitutional. Maersk’s APM Terminals unit (MAERSK-B.CO) had been put in temporary charge of operations at the Pacific terminal of Balboa while the country’s port authority prepared to bid a long-term contract. Mediterranean Shipping Co.’s terminal unit is also part of new management, according to published reports, managing Cristobal’s Atlantic facility.
President Donald Trump early in his presidency made taking back control of the Panama Canal a priority, saying China’s presence there threatened U.S. security.
Hutchison (0001.HK) in 2025 reached agreement to sell dozens of global port facilities to Mediterranean Shipping Co. and U.S.-based investor BlackRock (NYSE: BLK), for $23 billion. The deal, which included the Panama terminals, was blocked by China, which demanded a controlling stake for state carrier Cosco.
“The takeover of the two terminals reflects the culmination of a campaign by the Panama State against PPC and the concession contract over the past year,” Hutchison said in the release. The state wrested formal control with the publication of the ruling Monday.
“Government representatives arrived without invitation to the ports and informed representatives of PPC that the concession no longer exists and that PPC must cease operations, and instructed that PPC
employees would be transferred out of PPC, must not communicate with PPC, and must comply with government instructions, under threat of criminal prosecution,” Hutchison said.
“The State now has control of the terminals.”
While the company said it had ceased all operations at Balboa and Cristobal, it considers the entire process unlawful, and that the state’s actions “raise serious risks to the operations, health and safety at the Balboa and Cristobal terminals,” on which PPC was not consulted.
The company said it is considering its legal options.
This article was updated Feb. 24 to add information about Mediterranean Shipping Co.
Read more articles by Stuart Chirls here.
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