Hong Kong’s CK Hutchison Holdings Limited (CKHH) said Panama state on Monday took over the administrative and operational control of PPC’s terminals at the two ports – Balboa and Cristobal. The move comes after Panama’s Supreme Court of Justice ruled last month against Panama Ports Company S.A. (PPC), a member of Hutchison Ports and operator of the Balboa and Cristóbal port terminals, declaring the concession granted to Panama Ports Company to operate the ports at the Panama Canal “unconstitutional” – terminals it had managed under the concession contract since 1997.
Furthermore, CKHH said Tuesday in its statement that on Feb. 23 the official gazette of Panama published the ruling of the Supreme Court of Justice of Panama regarding law no. 5 of January 16, 1997, originally announced on January 29, 2026 (the ruling), and an executive decree issued by the President of Panama.
“Based on the referenced publications, statements by officials, and the Panama State takeover of the terminals, CKHH understands that the concession granted to PPC for the operation of the terminals at the ports of Balboa and Cristobal was deemed to be terminated as of 23 February 2026,” the statement of CKHH reads.
In a statement APM Terminals (APMT), an affiliate of A.P. Moller-Maersk, said has begun temporary operations at the Port of Balboa (Pacific side) in Panama for a period of up to 18 months.
“During this initial stabilization phase, our responsibility is to ensure that Panama maintains the continuity and reliability of its logistics hub, while safeguarding cargo and protecting the safety of all the workforce. This process requires speed and precision so that the port can progressively resume operations once the system installation is completed, along with other operational, audit, training, and verification tasks that our team will be carrying out at the Port of Balboa starting today,” said Marliz Bermudez, CEO of APM Terminals Panama.
One of the main tasks, according to APMT, will be the deployment of a new terminal operating system and the training of the workforce in this new system.
“We recognize the challenge the company has taken in this unprecedented process, yet we remain fully committed to Panama. We will work closely with our customers, authorities, and employees to ensure they receive clear and timely information on the progress of this stabilization phase,” Bermudez added.
Separately, CK Hutchison – a port investor, developer and operator – said PPC had ceased all operations at the terminals at Balboa and Cristobal on February 23, while describing the executive decree as “unlawful.” The Hong Kong company said PPC and CKHH would continue to consult legal advisors regarding the ruling and takeover.
A spokesperson for China’s ministry of foreign affairs said on Tuesday that Beijing “will firmly protect the company’s legitimate and lawful rights and interests.”
“China’s position on relevant Panamanian ports is clear. I believe you have noticed that the company concerned has issued a statement, saying that it will reserve all rights including to proceed legally,” spokesperson Mao Ning told reporters in a regular press conference.
