Panama has taken control of the ports of Balboa and Cristóbal on the Panama Canal after the country’s Supreme Court annulled the concession held by Hong Kong-based CK Hutchison. The supplied AFP via France 24 report says the Maritime Authority said it had taken possession of the ports and would guarantee continuity of operations.
The legal move is the latest turn in a dispute that has become much larger than a port contract. The canal is strategically important well beyond Panama: the report says it handles about 40% of US container traffic and about 5% of world trade. That is why a local court ruling can quickly become part of a wider US-China argument over influence, access and control.
CK Hutchison called the takeover unlawful and warned of risks to operations, health and safety at the terminals. The company also said it had not been advised or coordinated with the state. Panama, meanwhile, insisted the court had already ruled the contract unconstitutional and that publication of the ruling in the official gazette effectively ended the legal process.
President José Raúl Mulino tried to frame the move as a transition rather than an expropriation. He said Panama was using the assets to guarantee operation until their real value is determined. That is an important distinction because it suggests the government wants to present itself as restoring legality, not confiscating private property.
An 18-month transition period is now set to begin. According to the report, the ports will be operated by two other companies before contracts are awarded through a new international tender. Panama named APM Terminals, a subsidiary of Maersk, for Balboa and Terminal Investment Limited, owned by MSC, for Cristóbal. Labor Minister Jackeline Muñoz said there would be no layoffs, which matters because the two terminals employ around 1,200 people.
The political reactions underline how geopolitical the case has become. Hong Kong’s government issued a stern protest, while Beijing’s Hong Kong and Macao Affairs Office had warned Panama it would pay a heavy price if it stripped Hutchison of its tender. On the other side, US Ambassador Kevin Cabrera defended Panama’s right to have its judicial system make its own decisions and called the Supreme Court ruling very good for the people of Panama.
The source also places the dispute in a longer context. The Panama Canal was built by the United States, operated by Washington for a century and handed over to Panama in 1999. That history helps explain why the current dispute has been read in Washington and Beijing as more than a business disagreement. The evidence supports a simple conclusion: Panama has taken control of the ports, but the battle over the canal’s meaning is still underway.
