Panama takes control of Balboa and Cristobal terminals from the Chinese
Panamanian authorities have temporarily taken control of two large container terminals at the entrances to the Panama Canal – Balboa and Cristobal – and transferred them to the management of Maersk and Mediterranean Shipping Company (MSC) structures after a Supreme Court ruling invalidated the legal basis for the concession of Panama Ports Company (PPC), part of the Hong Kong-based CK Hutchison holding, according to an official statement from the Panamanian presidential administration.
The Panamanian Maritime Administration gained control of the terminals on the basis of a court ruling and presidential decree No. 23, which provides for the temporary occupation of movable property necessary to ensure the continuous and safe operation of the ports.
The transitional concession contracts for a period of up to 18 months were approved under an exclusive procedure: the Balboa terminal will be operated by APMT Panama, SA, the Maersk structure, Cristobal – TIL Panama, SA, affiliated with Mediterranean Shipping Company.
The reason for these steps was the publication of a Supreme Court decision in the official gazette. The 69-page document, dated January 29, 2026, declared the 1997 law approving the PPC contract unconstitutional and also annulled the extension of the concession from 2021.
China warned Panama of the political and economic consequences of the decision. CK Hutchison stated that it considered the termination of the concession and the actions of the authorities illegal and initiated international arbitration against the Republic of Panama. Panamanian President José Raúl Mulino emphasized that the measures taken do not constitute an expropriation of assets.
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