Panama annuls China-linked port contracts, hands ops to Maersk, MSC

26 Feb '26

2 min read

Panama annuls China-linked port contracts, hands ops to Maersk, MSC

Pic: Shutterstock

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Following the takeover by Panama of two Panama Canal ports from CK Hutchison (CKH) after the latter's concession was annulled amid a US-China dispute, the Hong Kong-based conglomerate said the former had threatened its employees with criminal prosecution if they defied orders to leave the ports.
CKH is mulling over legal action against Panama.
A CKH subsidiary had operated the ports for three decades.

Following the takeover by Panama of two Panama Canal ports from CK Hutchison (CKH) after the latter’s concession was annulled amid a US-China dispute, the Hong Kong-based conglomerate said the former had threatened its employees with criminal prosecution if they defied orders to leave the ports.

Terming Panama’s decision to cancel the port contracts and grant temporary licenses to Danish shipping company Maersk and Geneva-based Mediterranean Shipping Company (MSC) ‘unlawful’, CKH said Panamanian authorities made ‘direct physical entrance’ to the Balboa and Cristobal ports to remove employees of Panama Ports Company (PPC), a CKH subsidiary.

“CKH considers the ruling, the executive decree, the purported termination of PPC’s concession, and the takeover of the terminals to be unlawful,” the company said in a statement to the Hong Kong Stock Exchange.

“The actions by the Panama State also raise serious risks to the operations, health and safety at the Balboa and Cristobal terminals,” it said.

CKH is mulling over national and international legal action against Panama, according to global newswires. PPC had operated the two ports for nearly three decades.

The Panama Supreme Court ruling last month cancelling the contracts came amid growing US-China rivalry over global trade routes and President Donald Trump’s push to curb Chinese influence over the Panama Canal, which carries about 5 per cent of global maritime trade.

Meanwhile, Hong Kong’s government expressed strong dissatisfaction over and opposition to Panama’s takeover in a separate statement, urging Panama to respect the spirit of contracts and provide a fair and just business environment.

Panama said it approved two temporary concession contracts with the Panama Maritime Authority (AMP), lasting up to 18 months, for the operation of the Balboa and Cristobal terminals. APM Terminals Panama will operate the Balboa port, while TIL Panama, part of MSC, will run operations at Cristobal.

Fibre2Fashion News Desk (DS)