Panama Supreme Court Cancels CK Hutchison Canal Concession
Supreme Court annulled the 25-year extension of Panama Ports Company's concession after an audit flagged about $300 million in irregularities.
Overview
Panama's Supreme Court ruled on Jan. 29, 2025 that the 25-year extension of Panama Ports Company S.A.'s concession to operate the Balboa and Cristóbal terminals was unconstitutional, the court said.
The ruling followed a comptroller audit by Anel Flores that alleged $300 million in unpaid payments since the 2021 extension and about $1.2 billion during the original concession, records show.
President José Raúl Mulino said on Jan. 30, 2025 that the Panama Maritime Authority would work with Panama Ports Company to ensure uninterrupted operations until the ruling is executed, and that A.P. Moller‑Maersk would operate the ports in a transitional phase.
The concession, first granted in 1997 and renewed in 2021 for a 25-year term, covered Balboa and Cristóbal—two of five Panama Canal ports that handle about 5 percent of global maritime trade, records show.
Panama Ports Company said it had not been notified, reserved legal rights to challenge the decision, and China’s foreign ministry spokesperson Guo Jiakun said Beijing would take measures to safeguard the company's rights, company and Chinese officials said.
Analysis
Center-leaning sources frame the story as geopolitical — emphasizing US–China rivalry and Panama's reclaiming of strategic assets. They foreground leader rhetoric ("we're taking it back"), link Hong Kong control to Beijing's influence, and signal a 'victory for Washington', while including the firm's plea about local job impacts as counterpoint.
Sources (6)
FAQ
Balboa and Cristóbal are two of the five Panama Canal ports operated by Panama Ports Company, handling about 5% of global maritime trade.[story]
The audit by Anel Flores alleged $300 million in unpaid payments since the 2021 extension and about $1.2 billion during the original concession.[story]
Granted in 1997 for 25 years with a potential 25-year extension, it was automatically renewed in 2021 by the Panama Maritime Authority despite some opposition.[story]
President José Raúl Mulino stated that the Panama Maritime Authority would ensure uninterrupted operations with Panama Ports Company until execution, and A.P. Moller-Maersk would handle a transitional phase.[story]
Panama Ports Company said it had not been notified, reserved rights to challenge the decision; China's foreign ministry stated Beijing would take measures to safeguard the company's rights.[story]
History
3 sources