The Digester

Panama annuls CK Hutchison port contracts; Maersk and MSC take interim control

Feb 24th 2026

Following a Supreme Court ruling, Panama published a decree cancelling Balboa and Cristobal concessions and handed interim operations to APM Terminals and MSC while it prepares new contracts within 18 months.

  • Panama published an official annulment of Panama Port Company concessions after the Supreme Court ruled them unconstitutional.
  • APM Terminals will operate Balboa on the Pacific side and MSC Terminal Investment will run Cristobal on the Atlantic side under interim arrangements.
  • The government has assumed control of port facilities, cranes, vehicles and IT systems to keep operations running during the transition.
  • A decree sets an 18 month window for awarding new concessions to replace the annulled contracts.
  • CK Hutchison said PPC stopped operations, called the takeover unlawful and has initiated arbitration and legal consultations.
  • The dispute has escalated into a geopolitical flashpoint between the United States and China, with Beijing warning of political and economic consequences and reportedly halting some talks with Panama.

Sources

cnbc.com