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Panama Seizes Control of Canal Terminals, Installs Maersk and MSC as Interim Operators

A final Supreme Court ruling voided CK Hutchison’s concessions to set up an 18-month state-run transition.

Containers dock at Panama Ports Company (PPC) after Panama's Official Gazette published a court ruling formally annulling Hong Kong's CK Hutchison Holdings concessions for two ports along its strategic canal, after ruling late January the contracts violated the constitution, in Panama City, Panama, February 23, 2026. REUTERS/Enea Lebrun
An entrance to the Balboa terminal, run by CK Hutchison's Panama Ports Co., is closed after Panama's government ordered the occupation of the port following a Supreme Court ruling that the concession was unconstitutional in Panama City, Monday, Feb. 23, 2026.
A drone view shows Panama Ports Company (PPC) after Panama's Official Gazette published a court ruling formally annulling Hong Kong's CK Hutchison Holdings concessions for two ports along its strategic canal, after ruling late January the contracts violated the constitution, in Panama City, Panama, February 23, 2026. REUTERS/Enea Lebrun
An aerial view of the Balboa terminal, run by CK Hutchison's Panama Ports Co., after Panama's government ordered the occupation of the port following a Supreme Court ruling that the concession was unconstitutional, in Panama City, Monday, Feb. 23, 2026. (AP Photo/Matias Delacroix)

Overview

  • Under a presidential decree, the Panama Maritime Authority took possession of the Balboa and Cristóbal terminals and assumed control of movable assets including cranes, vehicles, and IT systems.
  • APM Terminals will operate Balboa and MSC’s Terminal Investment Limited will run Cristóbal under temporary contracts while Panama prepares a new tender for separate long-term concessions.
  • CK Hutchison called the takeover unlawful, reported direct physical entry by officials, said its subsidiary ceased operations on Feb. 23, and initiated ICC arbitration while warning of potential claims against third-party operators.
  • President José Raúl Mulino said the measure is not an expropriation and officials pledged uninterrupted service and no layoffs, protecting roughly 1,200 direct jobs during the transition.
  • Hong Kong and Beijing lodged formal protests and vowed to defend the company’s rights as the canal’s ports—vital to about 5% of global trade—become a focal point in U.S.–China rivalry.