Panama Canal Ports seized from CK Hutchison after Supreme Court scraps deal
The Panamanian government has moved to seize two panama canal ports from Hong Kong conglomerate CK Hutchison, handing what officials described as immediate control of the Balboa and Cristobal terminals to state authorities.
CK Hutchison said on Tuesday the government had made "direct physical entry into the terminals at Balboa and Cristobal" and had assumed "administrative and operational control" of the two canal ports. The company called the takeover "unlawful" and said it reflected the culmination of a campaign by the Panamanian state against its subsidiary, Panama Ports, following a recent court ruling.
How the state formalized the takeover
A government decree authorises the Panama Maritime Authority to occupy the ports for "reasons of urgent social interest. " The decree gives the maritime authority the right to take over port property, including computer systems and cranes.
Court ruling and the concession timeline
Last month Panama's Supreme Court ruled that CK Hutchison's concession to operate the two terminals was "unconstitutional. " CK Hutchison had renewed the concession in 2021 for another 25 years, but the court decision overturned that renewal. A lawsuit was brought before the court in 2025 as tensions over control of the waterway mounted.
International pressure and political flashpoints
The state takeover is the latest twist in a yearlong saga that placed CK Hutchison in the middle of a three-way dispute involving China, the United States and Panama following US President Donald Trump's return to the White House last year. Starting in December 2024, Trump alleged the Panama Canal was being operated by China and pledged to "take it back" — using military force if necessary — as part of an effort to reassert US dominance over the Western Hemisphere.
Responses from Beijing and Panama’s president
The Chinese government's Hong Kong and Macao Affairs Office described the Supreme Court ruling as "absurd" and "shameful, " warning that Panama would pay "heavy prices both politically and economically. " Panama’s President Jose Raul Mulino said he "strongly" rejected China’s threat and insisted that Panama is a country that upholds the rule of law "and respects the decisions of the judiciary, which is independent of the central government. "
What comes next for operations and replacement plans
The takeover follows moves that will shift operational control away from the Hong Kong-based firm. A Danish company will replace the Hong Kong-based firm after President Trump’s claims that the strategic waterway was controlled by China fueled international pressure. The immediate practical steps for terminal operations, computer systems and crane control are now in the hands of the Panama Maritime Authority under the terms of the decree.
Officials have framed the occupation as an emergency measure tied to the Supreme Court decision. The next confirmed milestone is the handover and operational transition overseen by the Panama Maritime Authority as set out in the government decree; further legal and administrative steps are unclear in the provided context.
