Panama Raids Hong Kong-Linked Port Operator After Court Voids Contracts
Panama prosecutors raided Panama Ports Company offices after the Supreme Court voided its contracts; the Balboa and Cristóbal ports handled about 39 to 40 percent of canal container traffic.
Breitbart NewsPanama Raids China-Linked Company After Court Voids Canal Contracts
Al JazeeraHong Kong-linked company decries search of Panama Canal port offices
ABC NewsPanamanian investigators remove documents from offices of co
ABC NewsPanamanian investigators remove documents from offices of company that ran canal ports
Overview
On Thursday, Panamanian prosecutors led by Azael Samaniego raided three Panama Ports Company offices and removed documents with help from the Judicial Investigation Directorate and the Panama Maritime Authority.
Panama's Supreme Court in January declared unconstitutional the contracts that had allowed Panama Ports Company, a subsidiary of CK Hutchison, to operate the Balboa and Cristóbal ports that it ran since 1997.
In a statement on Friday, Panama Ports Company said Panamanian authorities "acted in disregard for the rule of law" and accused officials of entering a private storage site without notice.
Investigations by the Comptroller General found irregularities that, according to Comptroller Anel Flores, caused roughly $1.2 to $1.3 billion in damages, while some government estimates put losses at about three times that amount.
The government granted temporary administration of Balboa to APM Terminals and of Cristóbal to TIL Panama for 180 days while the state transitions to new port management.
Analysis
Center-leaning sources frame the story as a geopolitical contest between the United States and China by emphasizing accusations and strategic context while offering sparse prosecutorial detail. Language like 'bowing to United States pressure' and 'accused China of running the canal,' selection of US–China reactions, and omission of CK Hutchison or Panama government responses steer readers toward a security/sovereignty narrative.
FAQ
Panama's Supreme Court declared the contracts unconstitutional on January 29, 2026, following a lawsuit by the comptroller after an audit alleged irregularities in the agreement.[1] Investigations by the Comptroller General found these irregularities caused approximately $1.2 to $1.3 billion in damages, with some government estimates suggesting losses could be three times higher.[1] CK Hutchison had operated these ports since 1997, with the contract last extended in 2021.[3]
The Balboa and Cristóbal ports are strategically located at each terminus of the Panama Canal and handled approximately 39 to 40 percent of canal container traffic.[1] These ports comprise part of Hutchison Port Holdings' global network of 53 ports across 24 countries, making them critical nodes in global trade routes that handle containerized goods, bulk commodities, and general cargo.[2]
In March 2025, BlackRock, along with Global Infrastructure Partners and Terminal Investment Limited (TiL), announced an agreement to acquire CK Hutchison's 90 percent interest in Panama Ports Company and 43 ports in 23 countries for $22.8 billion.[2] The deal stalled due to mounting geopolitical headwinds, with China objecting and linking it to pressure from the Trump administration, while demanding participation and state-owned COSCO involvement.[4] The consortium's exclusive negotiating period expired in July 2025, and by December the deal negotiations were at an impasse.[4]
Panama granted temporary administration of the Balboa and Cristóbal ports to APM Terminals and TIL Panama, respectively, for 180 days while the state transitions to new port management.[1] Panama Ports Company continues running the facilities while legal proceedings play out, with the government planning to award a new contract through an open tender that defends Panama's interests.[3]
CK Hutchison is seeking extensive damages through arbitration against Panama's decision to invalidate its contracts to operate the two ports.[3] Additionally, the company has expressed that Panamanian authorities acted in disregard for the rule of law when they raided three Panama Ports Company offices and removed documents.[1]
