Overview
- Panama’s Supreme Court annulled the 1997 contracts and their 2021 renewal for the Balboa and Cristóbal terminals after probes alleging violations and large financial harm.
- Panamanian media report APM Terminals, a Maersk unit, is poised to assume temporary management while Panama finalizes a new lease framework, with PPC continuing daily operations until the ruling is executed.
- CK Hutchison can seek only a motion for clarification in Panama and may explore foreign litigation or arbitration, though sovereign immunity and jurisdiction hurdles loom, according to legal analysis.
- Beijing condemned the decision and vowed to protect Chinese companies, while the U.S. ambassador praised the ruling as a win for rule of law and Secretary of State Marco Rubio welcomed the outcome.
- La Prensa reported the two ports handle nearly 40% of container traffic through the Canal, and the ruling clouds CK Hutchison’s planned sale of 43 port assets involving BlackRock, MSC and later China COSCO.