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Panama Supreme Court Voids CK Hutchison Port Concessions, Government Sets Managed Transition

Officials promise uninterrupted service through a managed transition with a temporary operator on standby.

Overview

  • Justices ruled the laws underpinning Panama Ports Company’s control of the Balboa and Cristóbal terminals unconstitutional, with court materials citing excessive privileges and other defects in the concession framework.
  • President José Raúl Mulino directed the maritime authority to coordinate with the operator, said PPC will continue day-to-day work until the ruling is final, and named a transition lead, with APM Terminals prepared to provide temporary oversight.
  • Panama Ports Company rejected the decision as lacking legal basis, said it reserves national and international remedies, and can seek clarifications even though Supreme Court rulings cannot be appealed.
  • The judgment throws CK Hutchison’s planned $22–23 billion ports sale to a BlackRockMSC consortium into uncertainty, and the company’s Hong Kong-listed shares fell about 4–5% after the news.
  • Beijing criticized the move and vowed to protect Chinese firms’ rights, while U.S. officials cast the outcome as a strategic gain in the contest over control near the canal, which handles roughly 5% of global maritime trade.