Panama Canal Ports Seized After Court Rules Concession Unconstitutional

panama canal ports were placed under government control Monday after Panama's Supreme Court ruled that the concession held by CK Hutchison’s Panama Ports Co. was unconstitutional, and authorities ordered the occupation of the terminals on Feb. 23, 2026.

Panama Canal Ports placed under occupation

Officials moved to seize two key canal ports from the Hong Kong operator CK Hutchison’s Panama Ports Co. in Panama City on Feb. 23, 2026, after the Supreme Court declared the concession unconstitutional. The government ordered the occupation of the terminals, a step that transferred operational control of the facilities to state authorities that same day.

Scenes at the Balboa terminal

At the Balboa terminal in Panama City, images from Monday, Feb. 23, 2026, show an entrance closed and containers sitting on the quayside as workers walked and stood inside the facility. Photographs taken at the Balboa terminal show the entrance shuttered, with employees visible on site after the government ordered the occupation following the court ruling.

Immediate effects and the move forward

The government action on Feb. 23, 2026, effectively put state authorities in charge of the two facilities once operated by CK Hutchison’s Panama Ports Co. The Supreme Court decision that the concession was unconstitutional was the legal trigger for the occupation, and images from the Balboa terminal that day captured closed gates and idle containers as authorities enforced the order.

The occupation of the ports on Feb. 23, 2026, marks the next confirmed milestone in the dispute: the government ordered and carried out the takeover of the terminals after the high court's ruling. Panama City residents and port workers saw the closures and increased presence at the Balboa terminal as officials executed that order.