Panama orders occupation of 2 key canal ports after Supreme Court ruling

Panama Government Orders Occupation of Ports at Panama Canal Entrances

The Panamanian government issued a decree on Monday ordering the occupation of two ports at the entrances of the Panama Canal. This decision was made following a final Supreme Court ruling that declared the operating concession held by Hong Kong-based company CK Hutchison unconstitutional.

The decree allows the Panama Maritime Authority to occupy the Balboa and Cristóbal terminals for “reasons of urgent social interest.” This includes taking control of all movable property such as cranes, vehicles, computer systems, and software.

The dispute over these ports is part of a larger rivalry between the United States and China, with Panama caught in the middle after President Donald Trump accused China of “running the Panama Canal.”

CK Hutchison was set to sell the ports to a consortium that includes U.S. investment firm BlackRock, but the Chinese government intervened and halted the deal. In January, Panama’s Supreme Court ruled that the concession contract for Panama Ports Company, a CK Hutchison subsidiary, was invalid, stripping the port operations of any legal basis.

Since 1997, PPC has managed the ports at the Panama Canal entrances. The government has announced that APM Terminals will temporarily take over the administration of the terminals while a new contract is negotiated to ensure the continuity of port operations and job stability.

Meanwhile, CK Hutchison has initiated arbitration proceedings against Panama, but the outcome and duration of the proceedings are uncertain. The company has also threatened to sue APM Terminals if they operate the concession, although APM Terminals has stated they are not involved in the legal dispute.

A spokesperson for PPC mentioned that the company is in discussions with the Panamanian government to reach an agreement for continued operations.

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