Panama orders control of canal ports run by Hong Kong firm after court ruling
South China Morning Post
by Associated PressFebruary 23, 2026
AI-Generated Deep Dive Summary
Panama’s government has issued a decree authorizing the Panama Maritime Authority to take control of two ports operated by Hong Kong-based company CK Hutchison. This move follows a Supreme Court ruling that declared the operating concession unconstitutional. The ports at Balboa and Cristobal, critical gateways to the Panama Canal, were previously managed under a concession agreement with CK Hutchison. The decree allows the authority to seize all movable assets within the terminals, including cranes, vehicles, and computer systems.
The situation is deeply tied to broader US-China geopolitical tensions. Earlier last year, President Donald Trump accused China of “running” the Panama Canal, drawing Panama into a diplomatic rivalry between the two global powers. CK Hutchison had been scheduled to sell its stake in the ports to a consortium led by BlackRock, a major US investment firm. However, Chinese government intervention halted the sale, highlighting Beijing’s strategic interest in maintaining influence over one of the world’s most vital waterways.
The legal battle over the ports began when Panama’s Supreme Court invalidated the concession contract for Panama Ports Company (PPC), CK Hutchison’s subsidiary, in January. The ruling also nullified a 2021 extension, leaving the port operations without a legal basis. This has sparked concerns about potential disruptions to global trade through the Panama Canal, which handles approximately 5% of world shipping traffic.
The takeover marks a significant escalation in Panama’s efforts to assert control over its own infrastructure. The move is seen as an attempt to balance external pressures while safeguarding national interests. As global powers jostle for influence in Central America, the situation underscores the strategic importance of the Panama Canal and its role in international trade and diplomacy.
Verticals
worldasia
Originally published on South China Morning Post on 2/23/2026