Finance
Panama officially scraps CK Hutchison contracts, handing canal ports to Maersk
Published by Global Banking & Finance Review®
Posted on February 23, 2026
2 min readLast updated: February 23, 2026
Quick Summary
Panama voided CK Hutchison’s port concessions and moved operations at Balboa and Cristóbal to Maersk’s APM Terminals on a temporary basis. AMP is overseeing a smooth handover while a new long-term concession is designed.
Panama Annuls CK Hutchison Port Pacts, Maersk to Run Canal Terminals
Panama Annuls CK Hutchison Port Concessions
PANAMA CITY, Feb 23 (Reuters) - Panama on Monday published in its official gazette a Supreme Court ruling canceling key port contracts held by a subsidiary of CK Hutchison, clearing the way for Maersk's APM Terminals to take over temporarily.
Court Ruling and Contract Details
The publication finalizes the legal annulment of concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Ports Company (PPC), subsidiary of Hong Kong-based CK Hutchison, had operated for more than two decades.
AMP takes possession to ensure continuity
Operational Control and Transition
The Panama Maritime Authority (AMP) has taken possession of both ports by decree to ensure uninterrupted operations, said Alberto Aleman Zubieta, head of the technical team overseeing the transition, after the ruling became final upon publication.
Separate contracts for Balboa and Cristobal
"Two separate contracts are being presented to the Board of Directors of the AMP — one for the Port of Balboa and one for the Port of Cristobal — instead of a single contract for both ports," Aleman Zubieta told a press conference.
No immediate Maersk comment
Maersk did not immediately have a comment about the matter.
Temporary Management by APM Terminals
Early in Feburary, Panamanian President Jose Raul Mulino said the government would move forward to formalize an agreement with APM Terminals Panama, a subsidiary of Danish shipping group Maersk, to manage and control the ports once the ruling became legally binding.
New long-term framework planned
Mulino said the arrangement would remain in place while the state develops a new long-term concession framework to be awarded in the future.
Gazette publication shifts control
"The moment the official gazette publishes the court's ruling Panama Ports loses control of the ports," political analyst Jose Stoute told Reuters.
Geopolitics: U.S.-China Tensions
The ruling issued in late January came amid growing U.S.-China rivalry over global trade routes and marks a win for Washington.
U.S. President Donald Trump has pushed to curb Chinese influence over the Panama Canal, which carries about 5% of global maritime trade.
(Reporting by Elida Moreno; Writing by Natalia Siniawski, Editing by Aida Pelaez-Fernandez and Sarah Morland)
Key Takeaways
- •Panama’s Supreme Court annulled CK Hutchison’s PPC concessions for Balboa and Cristóbal; publication in the official gazette made the ruling effective. (apnews.com)
- •The Panama Maritime Authority (AMP) assumed control to keep port operations uninterrupted during the transition. (apnews.com)
- •APM Terminals (Maersk) will temporarily manage the ports while a new concession framework is prepared, with separate contracts considered for each terminal. (ft.com)
- •Former canal administrator Alberto Alemán Zubieta is leading the technical team for the handover. (ft.com)
- •The shift occurs amid U.S.–China trade rivalry; CK Hutchison is pursuing legal remedies, including potential arbitration. (caixinglobal.com)
Frequently Asked Questions about Panama officially scraps CK Hutchison contracts, handing canal ports to Maersk
1What is the main topic?
Panama has annulled CK Hutchison’s long-standing port concessions and moved temporary control of the Balboa and Cristóbal terminals to Maersk’s APM Terminals while a new concession framework is developed.
2Who operates the ports now and for how long?
APM Terminals has been appointed as a temporary manager to ensure continuity. The arrangement will remain until Panama finalizes a new long-term concession process.
3Why did Panama cancel the CK Hutchison contracts?
A Supreme Court ruling found the concession arrangements unconstitutional. Following publication of the decision, the state took control to maintain operations and begin a transition to a new framework.
