Panama’s Supreme Court Voids CK Hutchison’s Panama Canal Port Concession

Overview

• The court declared unconstitutional the laws underpinning the company’s control of the Balboa and Cristóbal terminals, ending a concession dating to 1997.
• Panama’s comptroller sought annulment after audits alleging irregularities and more than $1 billion in lost public revenue from a 2021 extension.
• CK Hutchison rejects the claims, citing a 2021 certification of compliance by the Panama Maritime Authority and signaling it may pursue legal action.
• The ruling throws into doubt a nearly $23 billion plan to sell the Panama ports—along with dozens of others—to a consortium led by BlackRock and MSC.
• The decision draws geopolitical scrutiny as the canal carries about 5% of global maritime trade and President Donald Trump has asserted that China controls the waterway.