Panama’s Supreme Court has annulled a long-standing port concession held by a unit of CK Hutchison Holdings, ruling that the contract to operate terminals at either end of the Panama Canal was unconstitutional.
The unanimous decision follows lawsuits filed since 2021 and a 2025 government audit that alleged contractual irregularities and significant revenue losses. The ruling voids a 25-year extension granted without a competitive bidding process.
Panama’s President José Raúl Mulino said AP Møller-Maersk would temporarily operate the ports during a transition period, after which new concessions would be offered under revised terms.
The decision complicates a proposed $23bn sale of the terminals and aligns with renewed US efforts to curb Chinese influence in the region.
China’s foreign ministry said Beijing would “take all necessary measures to resolutely safeguard the legitimate and lawful rights and interests of Chinese enterprises” and the Hong Kong government urged its companies to review any investments in Panama.
ℹ️ Al Jazeera, Financial Times
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