An aerial view shows the Balboa Port, operated by Panama Ports Company, pictured February 1, 2025. REUTERS/Enea Lebrun
Updated: February 11, 2026 (Originally published February 6, 2026)
By Elida Moreno
PANAMA CITY (Reuters) – Panamanian President Jose Raul Mulino said on Thursday that the concession of contracts to operate two ports held and operated for nearly three decades by Hong Kong’s CK Hutchison Holdings will “never again” be issued to a single company.
Panama’s Supreme Court last week nullified CK Hutchison’s contract to operate two ports along its strategic canal through its Panama Ports Company subsidiary, ruling that the contracts violated the Central American nation’s constitution by giving the company exclusive privileges and tax exemptions.
“I don’t expect this situation to escalate,” Mulino said, calling the court’s decision definitive. “Panama is a dignified country and will not allow itself to be threatened by any country on earth.”
On Tuesday, China warned Panama there would be “heavy prices” to pay for the court ruling which China’s Hong Kong and Macau Affairs Office called “absurd” and “shameful and pathetic.” They vowed to defend the interests of Chinese companies.
Mulino added that it was unclear when the ruling would be enforced. In the meantime, the Panama Ports Company would continue to operate both ports, he said.
“The Panamanian state decides on the concession scheme to be granted much later,” he added.
On Wednesday, CK Hutchison said its Panama Ports Company unit had started international arbitration proceedings against Panama, in a case that could take years to resolve.
The decision and move to seek arbitration cast further doubt on the future ownership of the two ports and the company’s planned $23 billion deal to sell its port businesses (to Blackrock).
Reporting by Elida Moreno in Panama City and Raul Cortes in Mexico City, Writing by Stefanie Eschenbacher, Editing by Daina Beth Solomon and Matthew Lewis
(c) Copyright Thomson Reuters 2026.
This article contains reporting from Reuters, published under license.
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
CK Hutchison Holdings Ltd. has warned A.P. Moller-Maersk A/S of legal action should the Nordic company’s terminal unit try to take over operations at two ports near Panama’s strategic canal.
Hong Kong-based CK Hutchison has escalated a legal fight over its Panama Canal port concessions, triggering treaty arbitration and raising uncertainty over operations at the Balboa and Cristobal terminals as Panama advances plans for a forced transition.
The Trump administration warned that Peru is losing sovereignty over a Chinese-owned port near its capital city, after a local judge ruled that the port is exempt from some regulatory oversight.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
