Transportation Panama cancels port contracts of Hong Kong group
Panama's Constitutional Court has annulled the contracts of a Hong Kong company for the operation of two ports in the Panama Canal, which is important for shipping. The verdict is in line with US President Donald Trump. Criticism came from Beijing, however.
30.01.2026, 12:58
SDA
The contracts for the ports in Balboa and Cristóbal were unconstitutional, the Constitutional Court announced on Friday. The operator is a subsidiary of the CK Hutchison Group. The Hong Kong company had owned the ports since 1997.
The Hong Kong company's involvement caused a dispute with the US government last year because President Donald Trump claimed that China had control over the important maritime trade route in Latin America. Trump threatened to bring the canal under US control.
Future unclear
The Panama Ports Company subsidiary concerned stated that the court's decision did not comply with the relevant laws for the contract. China's Foreign Ministry spokesman Guo Jiakun said in Beijing that the People's Republic would take all necessary measures to protect the rights and interests of Chinese companies.
The supreme court decision should please Washington. CK Hutchison cannot appeal against it. It was not clear from the Constitutional Court's announcement exactly how the operation of the ports is to continue. This is likely to delay a deal with which the Group intends to sell its 43 port holdings in a total of 23 countries, including the ports in the Panama Canal.
What the deal envisages
The buyers are reportedly the US financial firm Blackrock together with Terminal Investment Ltd. owned by Italian billionaire and MSC founder Gianluigi Aponte. However, Beijing intervened in the deal in the meantime and began a review.
As recently as December, the Ministry of Commerce said that the authorities were reviewing the sale in accordance with the law. China wanted to ensure that the state-owned major shipping company Cosco received a major share of the interests to be sold.
The Panama Canal was built by the USA at the beginning of the 20th century. However, Washington ceded sovereignty over the canal zone completely to Panama at the end of 1999.
