Panamanian authorities have taken management of two ports on the Panama Canal from CK Hutchison after the Hong Kong-based conglomerate’s concession was annulled amid a row between the USA and China.
CK Hutchison objected on Tuesday (February 24, 2026) to the takeover, which it known as “illegal” and mentioned raises “severe dangers to the operations, well being and security” at terminals.”
Hong Kong’s Commerce and Financial Growth Bureau mentioned in a press release it had lodged “stern protests” with Panama’s consulate, including that it had expressed robust opposition and dissatisfaction and would “staunchly help the legit rights and pursuits of Hong Kong companies abroad.”
China’s Ministry of International Affairs additionally weighed in Tuesday. “China will firmly safeguard the corporate’s legit and lawful rights and pursuits,” mentioned spokesperson Mao Ning at a each day press briefing.
In January, the nation’s supreme court docket declared as “unconstitutional” the contract which had allowed Hutchison’s subsidiary Panama Ports Firm (PPC) to handle the ports of Balboa on the Pacific and Cristobal on the Atlantic since 1997.
“The Panama Maritime Authority has taken possession of its ports and ensures the continuity of operations,” an official mentioned Monday after the Panamanian Supreme Court docket annulled Hutchison’s contracts to function the ports.
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The court docket ruling was the most recent authorized transfer to ripple by the interoceanic waterway, which handles about 40% of U.S. container site visitors and 5 % of world commerce.
The Central American nation has been swept up in broader tensions between Washington and Beijing, with U.S. President Donald Trump claiming, with out offering proof, final yr that China successfully runs the canal.
Panama has all the time denied Chinese language management over the 80-kilometer (50-mile) waterway, which is used primarily by the USA and China.
Hutchison had requested the Panamanian authorities to enter into negotiations to permit it to proceed working the 2 terminals — to no avail.
Publication of the court docket ruling within the official gazette Monday (February 23, 2026) successfully ended the authorized course of.
“This doesn’t indicate the expropriation of these property, however somewhat their use to ensure the operation of the ports till their actual worth is set for the corresponding actions,” mentioned Panamanian President Jose Raul Mulino.
Ports director Max Florez mentioned an 18-month transition interval now begins, with the ports being operated by two different corporations earlier than contracts are awarded beneath a brand new worldwide tender.
PPC denounced the transfer as an “unlawful takeover with out transparency or coordination” and mentioned Panama’s actions have been “confiscatory.”
In its assertion Tuesday (February 24, 2026), CK Hutchison mentioned: “Not one of the actions by the Panama State have been suggested to or co-ordinated with PPC.”
It’ll proceed to seek the advice of with authorized advisors relating to the ruling and “all obtainable recourse together with… authorized proceedings towards the Republic of Panama and its brokers and third events colluding with them”, CK Hutchison added.
‘No layoffs’
China’s Hong Kong and Macao Affairs Workplace had beforehand warned that Panama would pay a “heavy value, each politically and economically” for stripping Hutchison of its tender.
Panama mentioned APM Terminals, a subsidiary of the Danish Maersk group, will function the port of Balboa, and Terminal Funding Restricted, owned by the logistics big MSC, will function the port of Cristobal.
Labor Minister Jackeline Munoz assured there can be “no layoffs” on the two terminals, which make use of round 1,200 individuals.
Following the court docket’s January ruling, the Panama Maritime Authority had mentioned a division of Maersk Group would quickly take over operation of the amenities.
Final week, Hutchison warned of potential authorized motion towards Maersk and others over the annulment of its contract.
The Hong Kong firm has mentioned it should problem Panama’s determination earlier than the Worldwide Chamber of Commerce.
U.S. Ambassador to Panama Kevin Cabrera defended Panamanian authorities, saying they’ve the best “to have their judicial system make its personal choices” and that the Supreme Court docket ruling was “superb” for the individuals of Panama.
The Panama Canal was constructed by the USA, which operated it for a century earlier than ceding management to Panama in 1999.
On his first day again within the White Home final yr, Mr. Trump threatened to grab the canal.
He cooled his threats after Panamanian authorities determined that the concession ran counter to Panama’s pursuits.
Printed – February 24, 2026 10:40 am IST