Panama Voids HK-Based Firm’s Canal Port Contracts

Panama’s Supreme Court has annulled contracts allowing a Hong Kong–based company to operate container ports on the Panama Canal, BBC News reported.

CK Hutchison Holdings, through its subsidiary Panama Ports Company (PPC), has operated two of the canal’s five ports since the 1990s. (Photo: Panama Ports Company Facebook) 

The ruling comes a year after US President Donald Trump claimed China was “operating the Panama Canal”—the main shipping link between the Atlantic and Pacific oceans—during his inaugural speech.

CK Hutchison Holdings, through its subsidiary Panama Ports Company (PPC), has operated two of the canal’s five ports since the 1990s.

The firm had previously agreed to sell the ports to a group led by a US investment firm as part of a wider deal.

The court found that the laws allowing the firm to operate the ports were “unconstitutional,” though PPC said the ruling “lacks legal basis.” Trump has repeatedly claimed the canal is under Chinese control, even though CK Hutchison is not owned by the Chinese government.

There is no evidence that China exercises control over the canal, although Chinese companies have a significant presence in the region.

The ruling could disrupt CK Hutchison’s plans to sell port interests worldwide to a consortium led by US investment firm BlackRock and shipping group MSC under a deal valued at $22.8 billion.

Up to 14,000 ships pass through the 51-mile (82-kilometer) Panama Canal each year, handling about 5% of global maritime trade volume. The canal is operated by the Panama Canal Authority, an agency of the Panamanian government.

From October 2023 to September 2024, China accounted for 21.4% of cargo volume transiting the canal, making it the second-largest user after the US.