Panama court annuls Hong Kong firm’s canal port concession


By AFP

anuary 30, 2026


The Port of Balboa at the Pacific entrance of the Panama Canal in Panama City on October 6, 2025 - Copyright AFP/File MARTIN BERNETTI

Panama’s Supreme Court annulled on Thursday the concession allowing Hong Kong-based CK Hutchison to operate ports at the Panama Canal, a year after US President Donald Trump threatened to seize the crucial passageway claiming China controlled it.

The case came after Trump threatened just days into his second term to take back the canal — built by the United States and handed to Panama in 1999 — as he said China was effectively “operating” it.

The Supreme Court found the laws which allowed CK Hutchison Holdings to operate two of the five ports of the canal “unconstitutional,” according to a court statement.

The CK Hutchison subsidiary concerned by the ruling rejected the judgement, saying that it “lacks legal basis”.

The ruling “jeopardizes not only PPC (Panama Ports Company) and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity,” it said.

The lawsuit to cancel the concession was brought before the Panamanian high court last year on allegations that it was based on unconstitutional laws and that the Hong Kong business was not paying taxes.

Panama Ports Company — a CK Hutchison Holdings subsidiary — manages the ports of Cristobal on the canal’s Atlantic entrance and Balboa on the Pacific side.

The concession was automatically renewed in 2021 for another 25 years.

Shares in CK Hutchison declined more than 4 percent in morning trading on the Hong Kong stock exchange on Friday.

CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

It has sought to sell the Panama Canal ports to a consortium led by US asset manager BlackRock. The status of that proposal is unclear following the court ruling.



– ‘Taking it back’ –



Chinese state media has previously slammed the proposed sale, while Beijing officials have urged parties involved to exercise “caution”, warning of legal consequences should they proceed without their clearance.

In April, the Panamanian Comptroller’s Office accused the firm of allegedly failing to pay the state $1.2 billion from its operations, according to an audit by the agency in charge of overseeing public spending.

Panama has been trying to avoid being dragged into what President Jose Raul Mulino last year called a “geopolitical conflict.”

Mulino has insisted the canal’s neutrality is intact and has urged Washington not to entangle Panama in its rivalry with Beijing.

Still, Panama has taken steps to ease the pressure from Washington.

Last year it withdrew from China’s Belt and Road Initiative, and earlier this month it announced new joint US-Panama canal defense drills — the fourth since 2025 — aimed at boosting readiness around the 50‑mile (80‑kilometre) trade route.

The canal has become a recurring flashpoint as Trump pursues what he calls the updated “Donroe Doctrine,” asserting expanded US authority in the Western Hemisphere.

In his inauguration address, the US president said: “We didn’t give it to China, we gave it to Panama. And we’re taking it back.”

At the same time, Beijing has sharply criticized moves against its assets in Panama, including the demolition late last year of a monument honoring Chinese workers who helped build the canal and the 19th‑century railway that preceded it.

The United States and China remain the canal’s top users, with around five percent of global maritime trade transiting from there.

Maersk to take over Panama Canal port operations from HK firm


By AFP
January 30, 2026


Balboa port on the Pacific side of the Panama Canal - Copyright AFP Sameer Al-DOUMY

Danish firm Maersk will temporarily take over operation of two ports on the Panama Canal from Hong Kong company CK Hutchison, whose concession has been annulled, the Panama Maritime Authority (AMP) said Friday.

Panama’s Supreme Court on Thursday invalidated Hutchison’s contract following repeated threats from President Donald Trump that the United States would seek to reclaim the waterway he said was effectively being controlled by China.

The canal, which handles about 40 percent of US container traffic and five percent of world trade, was built by the United States, which operated it for a century before ceding control to Panama in 1999.

On Friday, the AMP said port operator APM Terminals, part of the Maersk Group, would be a “temporary administrator” of the Balboa and Cristobal ports on either end of the waterway.

It would take over from the Panama Ports Company (PPC) — a subsidiary of CK Hutchison Holdings — which has managed the ports since 1997 under a concession renewed in 2021 for 25 years.

The Supreme Court found, without providing reasons, that the PPC and Hutchison’s role was “unconstitutional.”

The United States on Friday welcomed the decision.

But Chinese foreign ministry spokesman Guo Jiakun said Beijing “will take all measures necessary to firmly protect the legitimate and lawful rights and interests of Chinese companies.”

For its part, PPC said the ruling “lacks legal basis and endangers… the welfare and stability of thousands of Panamanian families” who depend on its operations.



– Continuity –



The annulment of the PPC contract was requested last year by the office of the comptroller — an autonomous body that examines how government money is spent.

It argued the concession was “unconstitutional” and said Hutchison had failed to pay the Panamanian state $1.2 billion due.

The PPC argues it is the only port operator in which the Panamanian state is a shareholder and says it has paid the government $59 million over the past three years.

“It is very hard to imagine that (the court ruling) was not influenced by persistent US pressure on canal ownership,” said Kelvin Lam, a China-focused economist at the consultancy Pantheon Macroeconomics.

He said foreign investors would likely be increasingly cautious about committing capital “to strategic infrastructure projects in the United States’ backyard.”

Panama has always denied Chinese control over the 50-mile waterway, which connects the Atlantic and Pacific oceans and is used mainly by the United States and China.

Panamanian President Jose Raul Mulino, who has called the CK Hutchison contract “extortionate,” said Friday the canal will continue operating “without disruption.”

He added there would be a transition period leading up to a new concession “under terms and conditions favorable to our country.”

Mulino did not specify when a new concession will be put on offer.

APM Terminals said in a statement earlier Friday it was “willing” to operate the ports “to support operational continuity” and to mitigate any risks to essential services.

CK Hutchison Holdings — founded by Hong Kong’s richest man Li Ka-shing — announced in March 2025 it would offload a 90 percent stake in PPC and sell a slew of other non-Chinese ports to a group led by US asset manager BlackRock.

But the transaction fizzled out after China protested.

‘Superman’ Li Ka-shing, Hong Kong billionaire behind Panama ports deal


By AFP
January 30, 2026


Hong Kong tycoon Li Ka-shing, a rags-to-riches billionaire, and his CK Hutchison conglomerate are at the centre of US-China rivalry after deciding to sell their ports concessions in strategic Panama - Copyright AFP/File ANTHONY WALLACE

Tommy WANG

Hong Kong tycoon Li Ka-shing and his conglomerate CK Hutchison have been tied up in global US-China rivalry since announcing a controversial $19 billion sale of strategic ports in Panama last year.

The Li family owns 30 percent of CK Hutchison, which controls ports, retail, infrastructure and other businesses in dozens of countries and reported revenue of $61.4 billion in 2024.

Li was Asia’s ninth-richest man, according to the Bloomberg Billionaires Index in January, with a total net worth of more than $42 billion.

Nicknamed “Superman” for his business acumen, the 97-year-old and his companies are woven into the fabric of Hong Kong life through everything from internet services to supermarket chains.

A Panama Supreme Court decision to annul CK Hutchison’s concession there on Thursday showed how container ports in geopolitically strategic locations have become a prized global currency.



– From refugee to billionaire –



Li was born in the southern Chinese city of Chaozhou in 1928.

A refugee from the Sino-Japanese War who fled mainland China to Hong Kong, he started a business in 1950 manufacturing plastic flowers and named it Cheung Kong after China’s Yangtze River.

He reaped big profits in the 1960s after diversifying into property, and extended his businesses into many sectors in the following decades.

Li also had a longstanding interest in overseas markets, making investments in the Canadian property and energy sectors in the 1980s.

He swam against the tide after Beijing crushed the pro-democracy movement in Tiananmen Square in 1989, becoming the largest Hong Kong investor in mainland China, primarily in the property sector, while foreign businesses fled.

He continued to invest heavily on the mainland during the 1990s, the dedicated capitalist courting Beijing’s communist leaders as China began to emerge as an economic superpower.

The extent of Li’s investments served as a powerful catalyst for foreign capital entering China in the following decades, propelling its economic miracle.

Li also supported China’s education and healthcare sectors through substantial philanthropic funding.

He enjoyed close ties with three generations of Chinese leaders, including Deng Xiaoping, the architect of China’s economic opening up.



– Weakening ties –



That closeness to China’s leadership weakened after Xi Jinping took power in 2012.

Beijing hardened its stance towards tycoons under Xi, including those from Hong Kong, and Li found his commercial and political manoeuvres under increasing criticism by government-affiliated media.

He has offloaded major property investments in China in recent years in a move seen as part of a quest for stability and a sign of being less reliant on the mainland.

Li announced a sweeping reorganisation of his vast business empire in 2015 following the sale of some Chinese assets.

Many of the more recent expansions were instead overseas, with CK Hutchison now operating in some 50 countries across telecoms, ports, infrastructure, and retail.

Li and his family are also reportedly thinking of spinning off and selling assets across its units.

Chinese state media have criticised Li for his apparent decision to divest from some mainland markets and for supposedly showing sympathy to pro-democracy protesters in Hong Kong in 2019.

Beijing authorities intensified pressure on CK Hutchison last year, repeatedly criticising the conglomerate’s sale of its Panama Canal ports.

The Beijing-based authority overseeing Hong Kong affairs reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots” after the sale plan was announced in March.

There has been slow progress in the CK Hutchison port sale negotiations since then, with analysts telling AFP that political factors have become a drag.

Panama’s Supreme Court found the laws that allowed CK Hutchison to operate two of the five canal ports “unconstitutional”, ending its decades-long concession.

The ports operator, CK Hutchison subsidiary Panama Ports Company, said the decision “lacks legal basis” and threatens thousands of livelihoods.

Hong Kong leader says concerns over Panama ports deal warrant ‘attention’


By AFP
March 18, 2025


The business empire of Hong Kong's richest man, Li Ka-shing, sold its Panama Canal port operations to a US-led consortium following pressure from US President Donald Trump - Copyright AFP/File MARTIN BERNETTI

Hong Kong leader John Lee on Tuesday said criticism of city conglomerate CK Hutchison’s sale of its Panama Canal ports deserved “serious attention”, after Beijing authorities repeatedly slammed the deal.

The business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its port operations — including those in the canal — to a US-led consortium this month following pressure from US President Donald Trump.

But Beijing has upped pressure on the firm since, with two Chinese government offices managing Hong Kong affairs republishing newspaper articles last week blasting the transaction and questioning whether CK Hutchison sided with the United States over China.

“There have been extensive discussions in society about the issue and this reflects society’s concern over the matter,” Lee, the chief executive of the largely autonomous Chinese city, told reporters.

“These concerns deserve serious attention.”

Bloomberg News reported on Tuesday, citing unnamed sources, that senior Chinese leaders have ordered several government agencies — including the State Administration for Market Regulation — to scrutinise the deal.

This examination by Beijing does not necessarily result in follow-up action, the sources told Bloomberg, asking not to be identified to discuss private deliberations.

Shares of CK Hutchison in Hong Kong fell nearly four percent on Tuesday morning.

For months, Trump has complained that China controls shipping in the Panama Canal, which was built by the United States more than a century ago to link the Pacific and Atlantic oceans.

The US president repeatedly threatened to “take back” the canal, which was handed over to Panama in 1999.


– ‘Bullying tactics’ –

Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one on the Cristobal, Atlantic, side and the other on the Balboa, Pacific, side — via a government concession since 1997.

CK Hutchison, one of Hong Kong’s largest conglomerates, said the deal was unrelated to recent political news.

Lee on Tuesday urged foreign governments to “provide a fair and just environment” for Hong Kong enterprises, without calling out the United States by name.

“We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations,” he said.

Lee said any transaction must comply with legal and regulatory requirements, adding that Hong Kong would “handle it in accordance with the law and regulations”.

The Hong Kong and Macao Work Office — an office in Beijing overseeing Hong Kong affairs — republished a newspaper article last Thursday asking CK Hutchison “which side it stands on”.

Two days later, it ran another piece critical of the deal, which was later republished by the Liaison Office, the top Beijing authority based in Hong Kong.

AFP has contacted the conglomerate for comment.

Outspoken Hong Kong ex-leader CY Leung added to the chorus of criticism, saying “some Hong Kong businesspeople mistakenly believe that ‘businesspeople have no homeland'”.

“American businesspeople can and will do only things aligned with US interests… the same applies to China,” Leung wrote on Facebook on Monday.

Hong Kong’s Hutchison under fire again for Panama ports deal


By AFP
March 15, 2025


View of the Port of Balboa, which was managed by CK Hutchison Holdings - Copyright PERUVIAN NAVY/AFP Handout

Hong Kong conglomerate CK Hutchison is under renewed pressure from Beijing after selling its Panama Canal ports, with Chinese authorities publishing newspaper criticism of the deal for the second time in three days.

Last week the business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its ports operations — including those in the canal — to a US-led consortium following pressure from US President Donald Trump.

In a statement, CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock for $19 billion in cash.

On Saturday, the Hong Kong and Macao Work Office — the Beijing-based authority in charge of Hong Kong affairs — reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots”.

The article, originally published by the Beijing-backed newspaper Ta Kung Pao in Hong Kong, said many Chinese people have questioned “how so many important ports can be so easily handed over to ill-meaning American forces”.

“If (entrepreneurs) fail to see the true nature of American politicians… and choose to dance with them, perhaps they can do a mega-deal and get rich for a while, but in the end they have no future and will be scorned by history,” the piece read.

The same article was also republished in full on Saturday by the Liaison Office, the top Beijing authority based in Hong Kong.



– ‘Choose a side’ –



CK Hutchison stocks in Hong Kong plunged more than six percent on Friday after Chinese authorities republished an op-ed telling the company to choose “which side it stands on”.

That older article appeared in the commentary section of Thursday’s Ta Kung Pao, which is owned by a subsidiary of the Liaison Office.

In contrast, Saturday’s editorial was excerpted on the front page and its full text ran on page three.

The paper’s website published three more opinion pieces by outside contributors on Sunday morning, all critical of the deal.

CK Hutchison has not responded to AFP’s request for comment.

For months, Trump has complained that China controls the Panama Canal and that American vessels were overcharged for using it, even refusing to rule out a military invasion of Panama to “take back” the vital waterway.

Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one at Cristobal and the other at Balboa — via a government concession since 1997.

The ports transaction was “purely commercial… and wholly unrelated to recent political news”, co-managing director Frank Sixt said when the deal was announced.

China’s foreign ministry spokesperson Lin Jian declined to comment on the deal earlier this month.

The Hong Kong government has said it “never interfered in the commercial operation of Hong Kong companies”.

CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

 

Report: Aponte Family May Buy Most of CK Hutchison's Terminals for $23B

CK Hutchison's container terminal in Balboa, Panama

Published Apr 14, 2025 2:10 PM by The Maritime Executive

 

The Aponte family-owned ports operator Terminal Investment Limited (TIL) is in the running to take over the vast majority of CK Hutchison's global container terminal portfolio after a deal led by BlackRock hit snags in Beijing. According to the South China Morning Post and Bloomberg, the restructured proposal would see BlackRock keep a 51 percent stake in Hutchison's two terminals in Panama - the sites of greatest interest to the U.S. government - while TIL would take over all 41 other sites around the world. 

If completed, the transaction would cost TIL about $23 billion, including $19 billion in cash, a source close to the agreement told SCMP on Monday.

The accuracy of the reports could not be verified, and may reflect a negotiation in flux. In an interview with Italy's ShipNews conducted Friday or Saturday, while MSC World America was at Ocean Cay, Aponte family top executive Diego Aponte laid out a much different deal: a three-way global split that would see ownership shared 70% for MSC, 20% for Blackrock, and 10% for CK Hutchison. It was unclear whether this version was still current as of Monday, as it contradicts other reporting. 

Whichever structure prevails, it would be among the biggest business deals in shipping in decades, so long as it can pass muster with authorities in China.

State-linked media outlets in Hong Kong have publicly slammed CK Hutchison for its initial attempt to sell the full portfolio to BlackRock, asserting that a mega-deal with an American company would be unpatriotic and would undermine Chinese security interests. According to Bloomberg, Beijing has retaliated by threatening to withhold government business and domestic regulatory approvals from CH Hutchison's family owners, who also have extensive business interests in mainland China.  

BlackRock's bid has heavy diplomatic support from the White House, and President Donald Trump has repeatedly threatened to "take back" the entire Panama Canal in order to counter alleged Chinese influence on the waterway. Following these maximalist threats, U.S. Secretary of Defense Pete Hegseth recently suggested that the U.S. has secured a more modest concession from Panama: local cooperation on reducing China's footprint.

Despite apparent progress on the diplomatic front, Blackrock's attempt to buy the Panamanian terminals has run into a local hurdle. Panama's comptroller general alleges that CK Hutchison's most recent lease renewal was never fully approved, and that the Panamanian government has been underpaid by hundreds of million dollars in fees. (CK Hutchison's Panama subsidiary denies any wrongdoing.) If substantiated, the investigation has the potential to slow down BlackRock's portion of the deal.

By splitting off the other 41 terminals in the Hutchison portfolio and selling them to TIL, the revised deal would allow Hutchison to complete the majority of its ports divestment without waiting for a Panamanian review - so long as Chinese authorities approve of TIL as a buyer. That might not happen, according to local experts. 

"Beijing doesn’t have to read the news before knowing who Hutchison is selling the assets to," Lau Siu-kai of the pro-government Chinese Association of Hong Kong and Macau Studies told SCMP. "Whether it is Italy or any other Western country taking control of the ports, Beijing still opposes the deal because these countries are vulnerable to pressure from the US." 

Speaking with ShipNews, Diego Aponte appeared confident that the transaction would eventually go through. "I am calm. There are discussions underway, but I believe that in a short time everything will be clarified with the various parties involved. Including the Chinese. To mutual satisfaction," he said. 

Hong Kong’s embattled CK Hutchison says profits down in 2024


By AFP
March 20, 2025


CK Hutchison this month offloaded its global ports business outside China -- including operations in the Panama canal -- to a group led by giant asset manager BlackRock for $19 billion in cash - Copyright AFP/File MARTIN BERNETTI

Holmes CHAN

Embattled Hong Kong conglomerate CK Hutchison Holdings, caught in a US-China spat over control of the Panama Canal, said on Thursday that profits fell 27 percent in 2024.

CK Hutchison this month offloaded its global ports business outside China — including operations in the canal — to a group led by giant asset manager BlackRock for $19 billion in cash.

The parties expect to sign a “definitive agreement” by April 2 concerning the Panama Ports Company, which has operated two of the five ports at the canal since 1997 via a government concession.

The deal came after weeks of pressure from US President Donald Trump, who refused to rule out a military invasion of Panama to “take back” the vital waterway from alleged Chinese control.

Thursday’s results announcement made no mention of the BlackRock deal.

“On the whole, the Group’s underlying operating results were relatively stable” last year despite a one-time issue related to its Vietnam telecommunications business, chairman Victor Li, son of billionaire founder Li Ka-shing, said in a filing with the Hong Kong Stock Exchange.

But CK Hutchison said its “ports and related services” division saw an 11 percent jump in revenue to $5.8 billion.

Earnings before interest, taxes, depreciation, and amortisation soared 19 percent year-on-year to $2.1 billion, the firm said.

“There may be headwinds with supply chain disruptions anticipated in the early part of the year due to shipping lines transitioning into their new alliances, as well as ongoing geopolitical risk impacting global trade,” Li said as part of the ports division’s 2025 outlook.

– Beijing scrutiny –



Shares in CK Hutchison jumped more than 20 percent in Hong Kong after the ports deal was first announced on March 4.

But Beijing made its displeasure known last week via two government offices overseeing Hong Kong affairs, which republished newspaper articles criticising the deal as “spineless” and “betraying and selling out all Chinese people”.

Hong Kong leader John Lee also said on Tuesday that concerns about the sale “deserve serious attention”, adding that the city will “handle it in accordance with the law and regulations”.

CK Hutchison cancelled its post-earnings press conference on Thursday and has not responded to multiple AFP enquiries.

Bloomberg News has reported citing unnamed sources that senior Chinese leaders have ordered government agencies including the State Administration for Market Regulation to scrutinise the deal.

The conglomerate is registered in the Cayman Islands and the assets being sold are all outside China.

Following years of diversification, operations in mainland China and Hong Kong made up just 12 percent of CK Hutchison revenue last year, according to Thursday’s results.

The conglomerate had previously claimed to have “the world’s leading port network”, which spans 53 ports in 24 countries.

But in terms of revenue, CK Hutchison’s ports division pales in comparison to its worldwide business interests in finance, retail, infrastructure and telecoms.

In Hong Kong, CK Hutchison is known for its founder, Li Ka-shing, the city’s wealthiest man and nicknamed “Superman” for his business savvy.

The 96-year-old enjoyed close ties with three generations of top Chinese leaders, but the bonhomie faded after Xi Jinping took power.

Over the past decade, Chinese state media has criticised Li for his apparent decision to divest from some Chinese markets and for supposedly showing sympathy to Hong Kong pro-democracy protesters in 2019.

CK Hutchison: the Hong Kong firm behind Panama port operators


By AFP
February 3, 2025


A ship is loaded with containers at Balboa, operated by Hutchison Ports, in Panama City - Copyright AFP/File Luis ACOSTA
Holmes CHAN

A sprawling business empire built by Hong Kong billionaire Li Ka-shing is caught in the crossfire as the extent of Chinese influence over the Panama Canal is debated.

US Secretary of State Marco Rubio said last week it was “unacceptable” for Hong Kong-based companies to control the canal’s entry and exit points, arguing they could shut down transit if Beijing ordered them to.

Panama has now announced an audit into the subsidiary of Li’s CK Hutchison Holdings, which manages two of the canal’s five ports.

Here’s what you need to know about the Panama port operator and its ties to China:

– Who runs the ports? –

Hutchison Ports PPC — which also uses the name Panama Ports Company SA — has managed the port of Cristobal on the canal’s Atlantic side and Balboa on the Pacific side since 1997 via a concession from the Panama government.

That arrangement was automatically renewed in 2021.

Hutchison Ports said last month that it is the “only port operator in the country where the state is a shareholder”, and that it had paid the Panama government $59 million in the past three years.

It said its workforce is almost entirely Panamanian.

Parent company CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

The company has a hand in running 53 ports in 24 nations, including in Britain, Spain and Australia.

– Hong Kong’s ‘Superman’ –

CK Hutchison was built from nothing by Li — now Hong Kong’s richest man, nicknamed “Superman” for his business acumen.

His company Cheung Kong — named after China’s Yangtze River — thrived in Hong Kong’s property market during the British colonial era and began expanding overseas in the 1980s.

In 2015, CK Hutchison was born out of a restructuring.

Three years later, Li stepped down as company chairman at age 89 and handed control to his eldest son Victor.

The firm and its subsidiaries operate a range of businesses, including ports, in mainland China.

Li was known to have close ties with top Chinese leaders before Xi Jinping came to power.

Victor Li is a long-time member of the Chinese People’s Political Consultative Conference, a top political advisory body.

– Exposure to China –

Rubio says the current arrangement is not in the national interests of the United States.

If Beijing ordered a shutdown of the canal, a Hong Kong firm would have no choice but to comply as “a company based in Hong Kong is the government of China”, Rubio said last week, without specifying CK Hutchison by name.

A former British colony, Hong Kong was handed over to China in 1997 under a “One Country, Two Systems” framework which promised a high degree of autonomy and a separate legal and financial system.

But Beijing has remoulded Hong Kong in its authoritarian image after the city saw huge and sometimes violent pro-democracy protests in 2019.

Critics say the city’s two subsequently imposed national security laws curtail rights and undermine the free and open business environment that made Hong Kong an international finance hub.

In 2020, Israel rejected an infrastructure bid from CK Hutchison after then US secretary of state Mike Pompeo warned about Chinese involvement.

– ‘Never interfered’ –

A Hong Kong government spokesperson told AFP that the city’s authorities have “never interfered in the commercial operation of Hong Kong companies”.

The financial hub has been a “staunch supporter of the multilateral trading system and opposes any country imposing measures or restrictions that undermine normal trade or business operations”, the spokesperson said.

CK Hutchison did not respond to questions about canal operations. Last month the company directed AFP to a statement by its Panama subsidiary.

 

COSCO Cancels Container Service at Balboa in Panama

COSCO vessel seen in the Panama Canal

Published Mar 11, 2026 6:24 PM by The Maritime Executive

 

China’s state-owned shipping company COSCO Shipping Lines informed customers in a memorandum dated March 10 that it has suspended all services at the Port of Balboa, Panama, at the Pacific terminus of the Panama Canal. No reasoning was given for the suspension, which quickly contributed to speculation that it was another step in China’s retaliation against Panama after the seizure of the port terminal operations from CK Hutchison.

In a brief customer advisory obtained by Panama’s La Prensa newspaper, COSCO writes that it is suspending its services at the Port of Balboa. “There will be no departures or arrivals at the Port of Balboa. Confirmed bookings will be canceled,” it advises.

Import releases will be delivered as normal, reports COSCO. However, it also says that empties must be returned only to the Ports of Manzanillo or Colón Container Terminal; no units will be received in Balboa.

The move comes just weeks after Panama seized the operations from a subsidiary of CK Hutchison and entered into new contracts with Maersk’s APM Terminals and MSC’s Terminal Investment Ltd. (TiL) for the operations at the ports at each terminus of the Panama Canal. APM took over all the operations at Balboa, with Panama reporting that the terminals are back to normal operations. Maersk has a temporary 18-month contract with Panama, which says it will rebid the operations. 

The announcement came a day after China’s Ministry of Transport announced that it had held “talks” with Maersk and MSC in China. It said they were “regarding their international shipping operations.”

CK Hutchison and its operating subsidiary, Panama Ports Company, have threatened various legal actions against both the companies and the government of Panama. It said it will be seeking a minimum of $2 billion in damages in an international arbitration it has filed against Panama. 

When it was first reported that Panama had asked APM to temporarily operate the terminals, CK Hutchison said it had notified A.P. Moller-Maersk that any assumption by APM Terminals of operations of the two terminals without its agreement would cause damages. It said it would result in recourse against APMT.

Chinese officials have criticized Panama, and reports said they were advising other Chinese companies not to invest in the country. It said publicly that the actions against Hutchison raised concerns about investments, and it accused Panama of legal violations in not honoring its contracts.

It is unclear how much volume COSCO handled with Panama. The company did not make it clear if this was a temporary or permanent change, or if it would be changing its operational routes. COSCO Group is ranked as the fourth largest global container carrier with a capacity of over 3.7 million TEU and over 550 containerships. Other divisions are large bulk carriers, as well as a tanker operator and car carriers. 

China Reports it Held “Talks” with Maersk and MSC in Beijing

Speculation is that China might seek revenge against MSC and Maersk for taking over Hutchison's port terminal operations in Panama

Published Mar 10, 2026 10:14 PM by The Maritime Executive

 

China’s Ministry of Transport issued a one-sentence notice reporting it had held “talks” with both Maersk and MSC Mediterranean Shipping Company. While no details were announced, it quickly raised speculation that Chinese officials were reacting to the two companies' assumption of the port terminal operations in Panama after the government annulled CK Hutchison’s concession and seized the operations in Balboa and Cristobal.

In the unusual statement, the Ministry of Transport announced it had “held separate talks with relevant officials from Maersk Group and Mediterranean Shipping Company regarding their international shipping operations.” It said the meeting had taken place on March 9 while offering no further details.

Chinese officials in both Beijing and Hong Kong, where Hutchison is based, have spoken out strongly against the court ruling and Panama’s actions against Hutchison. They have reportedly warned other companies about doing business in Panama while publicly saying it would defend Chinese companies’ rights and legal positions. It contends Panama’s actions raise doubt about investing in the country.

CK Hutchison and its operating company for the two ports, Panama Ports Company, have alleged that the seizure was the completion of a campaign by the government of Panama against the company. They asserted misstatements and distorted facts as the campaign progressed against the Panama Ports Company.

After the Supreme Court’s decision was first announced, Hutchison said it would take legal action and threatened both APM Terminals, the Maersk terminal operator, and any other companies that interfered with its operations. It said it could pursue legal charges and claims for damages against APM if it took over the operations.

Panama decided to split the operations, giving one port to APM and the other to MSC’s Terminal Investment Limited (TiL). Each company was given an 18-month temporary contract, while Panama said it will re-bid the concessions. Further, Panama took control of all the equipment and material at the ports to continue the operations. Panama has reported that both ports were back to full operations in a matter of days.

Last week, Hutchison announced that it had filed grievances against Panama and was seeking talks to resolve the situation. Panama Ports has filed an international arbitration, saying it would seek at least $2 billion in damages while also demanding the return of papers and other information seized by Panama after taking control of the operations.

Speculation is centered on China taking further actions as a form of revenge against the two shipping companies. Reports are raising the possibility that China will launch retaliatory actions against the two companies to punish them for their involvement with Panama. 

Media reports have also highlighted that BlackRock and MSC are believed to be pushing to complete the planned acquisition of CK Hutchison’s international portfolio of terminals. The companies had agreed to the deals a year ago, but they became stuck in the geopolitical issues between the United States and China. Late last year, it was speculated that the negotiations were at an impasse. The new speculation is that the companies were pursuing a move to carve up the portfolio, permitting COSCO to take the lead on ports viewed as critical to China. It is unclear if China’s dissatisfaction over the outcome in Panama has increased the opposition to the sale of the portfolio of terminal operations, even if COSCO could have a leading position.

 

Panama’s Comptroller Asks Court to Void Hutchison’s Terminal Concession

Hutchison's operation of the terminals in Panama is now being challenged by the country's Comptroller General (CK Hutchison file photo)

Published Jul 31, 2025 12:58 PM by The Maritime Executive

 

The struggle over the operations of the terminals at each terminus of the Panama Canal continues with Panama’s Comptroller General announcing his office has filed lawsuits seeking to void the 2021 contract extension with CK Hutchison. It is the latest twist in the political wrangling that has seen Donald Trump assert China controls the Panama Canal while Panama’s Government has defended its sovereignty. 

Anel Bolo Flores, Comptroller General of Panama, has spoken out against the contract extension granted by the prior government in 2021 to Panama Ports Company, which is 90 percent owned by CK Hutchison. The government of Panama has a 10 percent ownership stake in the company. In April, under political pressure from the United States, the Comptroller General reported that his office was starting an audit of the contract and the renewal process.

Speaking at a press briefing in Panama, Flores said on July 31, “The contract was bad, one-sided and abusive, against the interest of the country,” Bloomberg reports. Without releasing the details of his audit, Flores said the contract extension was “poorly negotiated.” He contends the audit found “many irregularities.”

CK Hutchison in April issued a detailed statement asserting that the contract is “valid, in force, and compliant with all legal requirements.” It highlighted that in 2020, the Office of the Comptroller General of the Republic concluded that the company was “in substantial compliance with the clauses and obligations of the concession contract,” which was also later certified in 2021by the Panama Maritime Authority.

The company has been in Panama since 1997, as the United States moved to complete the handover of the Canal under the 1977 treaty. Hutchison operates terminals in Balboa and Cristobal and in 2021 was awarded a 25-year extension of its concession in a no-bid process.

Flores has repeatedly spoken against the process conducted by the prior government and contends the renewal was “never legally authorized.” He cites tax breaks and amendments, which he says are costing Panama up to $1.3 billion in lost revenue.

The Comptroller General’s office said it is filing two legal cases with the country’s Supreme Court. One seeks to declare the extension unconstitutional, and the other seeks to void the 2021 agreement.

Also at issue is the proposed sale of the Panama Ports Company to an investment group led by BlackRock and MSC’s Terminal Investments Ltd. Trump hailed the deal as returning the Panama Canal to U.S. control, but the deal has encountered strong opposition from China, which says it is U.S. manipulation that would harm Chinese trade.

Flores commented as part of his briefing, saying, “They are talking about billion-dollar deals here, which do not include Panama, the true owner of the Panamanian ports," reports Reuters. "That is why we have taken the actions we are taking, because we are not satisfied."

The lockup agreement between Hutchison, BlackRock, and TiL expired on July 27, but Hutchison reported on Monday that talks were continuing. It said they were exploring inviting a Chinese investor to join the consortium, a step that is seen as face-saving for the Chinese government. Adding a further element to the negotiations, CMA CGM’s CFO told investors on Tuesday, the French company is looking at the deal and expressed interest in possibly acquiring some of the terminal assets controlled by CK Hutchison. 

Hutchison reported in March that it had reached two parallel tentative agreements with the BlackRock-TiL consortium. One was for the acquisition of the Panama company operating the Balboa and Cristobal terminals. The other deal is for the 43 ports operations worldwide outside China. 

Panama’s President Jose Raul Mulino told reporters during his weekly briefing on Thursday that maybe the solution would be a public-private partnership to run the terminals. He said the situation is now in the hands of the court, but that he does not think the Hutchison contract would continue or be amended. He has been adamant that the canal and its operations are Panama's and that he would ensure it remains a Panamanian asset. Earlier this year, he took steps to end some of China's involvement with Panama while rejecting Trump's claims of Chinese domination.

 

Report: COSCO Seeks Share of Hutchison Deal Addressing China’s Fears

COSCO which already has substantial port operations is negotiating for a port of the deal to acquire CK Hutchison's portfolio (COSCO Zeebrugge)

Published Jun 13, 2025 5:27 PM by The Maritime Executive

 

A new report is suggesting that China’s COSCO Shipping is negotiating for a role as an investor in the deal to acquire the terminal operations of CK Hutchison. Bloomberg first reported that a group of Chinese investors is in discussions with MSC’s Terminal Investments and BlackRock about participating in the $23 billion deal for the terminal operations in 41 ports around the world.

China has strongly objected to the deal and primarily the parallel portion that sells the operation of terminals at both ends of the Panama Canal. Billionaire Li Ka-shing who controls CK Hutchison has long been at odds with the communist government and with the announcement of the deal China said it was a betrayal of the nation. It sees the agreement to sell the operations in Panama to BlackRock as a threat to Chinese trade and being done to appease Donald Trump and his assertions that “China runs the Panama Canal.”

The two deals have also come under scrutiny from various parts of the shipping industry which cites MSC’s growing domination. Panama officials told the Financial Times that the concentration of terminal ownership could threaten the promised neutrality of Panama’s operations. Well-known industry analyst Drewry also highlights that TIL would become a dominant force in port operations. TIL says on its website that it operates more than 70 terminals worldwide in 31 countries and handles more than 65 million containers annually. MSC has also become the sole investor in the Port of Hamburg (Germany) with the city.

CK Hutchison announced at the beginning of March that it had entered into exclusive negotiations with the BlackRock investment group for the terminals in Panama as well as its portfolio of properties worldwide except for Hong Kong and the Chinese mainland. The outline of the deal called for the sale of 80 percent ownership of CK Hutchison’s portfolio of 43 global ports (199 berths in 23 countries) and in a parallel agreement 90 percent ownership of Panama Ports Company, which operates the terminals in Balboa and Cristobal, Panama. It later came out that TIL was negotiating for as much as 70 percent ownership of the international portfolio with BlackRock holding just 20 percent and 10 percent retained by CK Hutchison.

China has said it would be reviewing the deal to ensure it followed the rules although it has no official oversight role. Restructuring to add a portion of the investment from COSCO and possibly other Chinese companies could be seen as a face-saving move for the Chinese government. COSCO is a logical company to lead the Chinese portion as its COSCO Shipping Ports as of December 31, 2024, operated and managed 375 berths at 39 ports globally, of which 226 were for containers, with an annual handling capacity of approximately 124 million TEU.

Bloomberg points out that the exclusive agreement between Hutchison and the BlackRock/TIL group was for 145 days meaning it is due to expire in late July. They could agree to extend the exclusive agreement or it could open the door for alternate bids. Hutchison and BlackRock had said they were targeting signing definitive agreements on or before April 2.

 

Panama Court Finds CK Hutchison's Port Terminal Concession Unconstitutional

Container terminal in Cristobal (US Embassy)

Published Jan 30, 2026 1:47 PM by The Maritime Executive

 

The Supreme Court of Panama announced late on Thursday, January 29, that it had found the laws establishing CK Hutchison’s concession to operate terminals at the ports at the terminus of the Panama Canal unconstitutional. The government quickly issued a statement assuring that the terminal operations would continue uninterrupted, while the company and the governments in Hong Kong and Beijing denounced the decision, alluding to political motivations.

The court, in its brief statement, said it had conducted “extensive deliberation and discussion” before concluding that the 1997 acts were unconstitutional under Panama’s law. They are related to the concession contract between Panam and the Panama Ports Company, 90 percent owned by CK Hutchison, for the development, construction, operation, administration, and management of the port terminals for containers, ro-ro, passengers, bulk cargo, and general cargo in the ports of Balboa and Cristóbal. They did not say when the decision would become final.

Panama’s Controller, Anel Flores, brought the case to the court last July after completing an audit of the operation of the terminals, and under increasing political pressure from Donald Trump and the United States, which was threatening to take back the Canal after asserting that China controlled the Canal. Flores said the audit found irregularities that had cost the government $300 million since 2021 and an estimated $1.2 billion since 1997. He asserted that payments had not been made, there were accounting errors, and “ghost concessions” in the ports.

Panama’s President Jose Raul Mulino issued a statement asserting that the terminal operations would continue. He said in the interim, the government would work with the Panama Maritime Authority and Hutchison’s company. Panama said there would then be a transitional phase until a new concession process could be completed, during which Maersk’s APM Terminals would operate the terminals.

CK Hutchison established the Panama Ports Company in 1997 to operate the terminals, with Panama owning a 10 percent interest. In 2021, the concession was extended for 25 years without a formal bidding process.

Hutchison quickly responded, saying the concession was the result of a transparent international bidding process and that it had complied with its contractual and legal obligations. Over the 28 years, the company states it has invested more than $1.8 billion in infrastructure, technology, and human development.

The company issued a statement on January 29 saying the new ruling “lacks legal basis.” It asserts the court’s decision is “diametrically opposed” to previous rulings and would “undermine the reputation of Panama as a reliable jurisdiction.” Beijing echoed the same sentiment, issuing a warning to all Chinese companies doing business in Panama. The Chinese government said it would act to protect the business interests of Chinese companies.

Hutchison is based in Hong Kong, and the local government, although often at odds with the company, issued a statement saying it “opposes any foreign government using coercive, repressive, or other unreasonable means.”

It is unclear when the court would finalize its decision and make it effective. Hutchison also said it “permanently reserves all rights, including recourse to national and international legal proceedings.”

APM issued a statement confirming its willingness to assume the temporary operation of both terminals. It emphasized this would be carried out in full accordance with the legal requirements.

The decision also cast further doubt on the deal CK Hutchison announced nearly a year ago to sell its Panama company to an investment group led by the US’s BlackRock, with investment from MSC’s Terminal Investments Ltd. The deal was stalled due to Chinese opposition. Recently, it was speculated in the press that Hutchison was looking to split its terminal operations and sell them off piecemeal to address China’s objections. In addition to Panama, the company was to sell its operations in more than 20 countries, keeping only the terminals in China.

Concurrent with the news, the Panama Canal Authority announced today it had published the prequalification documents for two new proposed terminals. Panama has a total of five ports, although Balboa and Cristobal are the most critical as they are at each terminus of the Canal. The Authority said the new project calls for terminals on both the Atlantic and Pacific coasts and aims to increase Panama’s transshipment capacity to between 5 and 6 million TEU annually.

The Authority reports it has met with representatives from APM Terminals, Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited, ONE, and Evergreen regarding the new terminals. They expected to conduct a tender this year for the new operations.

 Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits

Workers carry out maintenance at the Pedro Miguel locks of the Panama Canal during routine upkeep in Panama City, Friday, May 30, 2025. (AP Photo/Matias Delacroix, File) 

By Kanis Leung - Associated Press - Friday, August 1, 2025

HONG KONG — A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company’s contract over its Panama Canal port assets has been faced with lawsuits in the Central American country.

Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement.

Panama’s Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was “abusive” of Panama’s interests.

In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas - Panama’s currency - to the country’s economy.

It said it wants to work with the government in Panama for a better future.

“Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,” it said.

The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city’s richest man.

Panama’s comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country.

CK Hutchison Holdings’ initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington.

U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.

After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company.

The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal.

Panama Ports Company said Friday it would communicate with the Panamanian government “at the appropriate time,” affirming that it believes engaging with the government “is vital to discuss the way forward for” the company.

Panama’s government maintains it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it.

Hutchison Calls for “Respectful Coordination” and Consultations with Panama

Hutchison has a 25-year concession to operate the terminals in Cristobal and Balboa (Panama Ports Company)

Published Aug 1, 2025 2:37 PM by The Maritime Executive

 

A day after Panama’s Comptroller announced that his office is seeking to void the concession for the terminal operations in Balboa and Cristobal, CK Hutchison issued a statement calling for coordination with the Government of Panama. The Hong Kong-based company is seeking to protect the concession, which is seen as one of its key assets, despite the political firestorm that has been created in 2025.

The Panama Ports Company was formed in 1997, and Hutchison owns 90 percent of the company, with the Government of Panama holding the remaining 10 percent. It is responsible for the operations of the terminals at each terminus of the Panama Canal. Balboa is the larger of the two terminals, handling approximately 2.3 million TEU in 2024, while Cristobal handled just over 1 million TEU. Most of the volume handled in the ports, however, is transshipments. Data shows that 90 percent of Cristobal’s volume is transshipments, while it is 95 percent at Balboa.

After Panama filed two lawsuits seeking to rule the contract extension for the terminals unconstitutional and void, Panama Ports Company, via Hutchison, responded with a statement calling for “respectful coordination and constructive consultations” to protect the concession. It highlights that it has had a positive impact on Panama, creating jobs and contributing to the economy.

“Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,” the company states.

Panama, under pressure from the Trump administration, has sought ways to reduce its involvement with China. The concession for the port terminals has become one of the focal points criticized by the Comptroller’s office, which contends the extension was not conducted legally in 2021.

Panama’s President Jose Raul Mulino yesterday, July 31, told reporters he did not think the concession would continue. He said they would await the court’s decision but suggested a new public-private partnership might be formed to run the terminals.

Panama has also been critical of the sale process after CK Hutchison agreed to sell its interest in the Panama company to a consortium led by BlackRock and MSC’s Terminal Investments Ltd. Hutchison addressed the criticisms in its statement.

“At the appropriate time within the sale process, PPC (Panama Ports Company) will communicate with relevant parties, including the Government of Panama,” writes Hutchison. “We affirm that we believe engagement with the Government of Panama is vital to discuss the way forward for PPC and that we want to work with the Government for a better future to support the people of Panama.”

China has been highly critical of the sale process, accusing the U.S. of driving it. China says the deal would threaten its global trade and has reportedly demanded a role for a Chinese company in the consortium. Hutchison confirmed at the beginning of the week that it was exploring reworking the deal and inviting a major Chinese company to participate in the purchase of its terminal portfolio.

 

China Lashes Out at Hutchison’s Ports Deal with BlackRock-MSC Partnership

Hutchison would sell its operations in 23 ports worldwide but much of the focus is on the terminals in Panama (CK Hutchison file photo)

Published Mar 14, 2025 12:13 PM by The Maritime Executive

 

After initially saying it would not comment on a “commercial deal,” the Chinese government used the media to lash out at the deal and criticize CK Hutchison. The proposed sale involves operations in 43 global ports outside China and the terminals at each side of the Panama Canal but is becoming embroiled in the larger political debate and the trade war between Trump and China as well as the government’s criticism of Hong Kong billionaire Li Ka-shing who controls CK Hutchison.

The government-owned newspaper Ta Kung Pao based in Hong Kong and seen as a mouthpiece for the Chinese Communist Party released a strongly worded editorial on Thursday, March 13, attacking the deal on patriotic terms. It cites the Trump administration's moves on tariffs and pending proposal for port fees on Chinese-built ships rolling it all into an American plot for domination. They warn the deal is part of a plot to deprive China of access to key shipping routes and global trade.

The New York Times highlights that the article says if the deal is completed, “the United States will definitely use it for political purposes and promote its own political agenda. China’s shipping and trade there will inevitably be subject to the United States.”

The reports cite that there has been a growing strain between Li Ka-shing and the Communist government which views him as supporting rival positions. The article calls CK Hutchison which said it would make $19 billion on the deal “profit-seeking,” and says it is “spineless groveling,” as well as a betrayal of the Chinese people. 

Saying that the deal goes against national interests, the editorial warns that the company “should think twice,” and “carefully,” about its position and where it stands. Official government sources quickly reposted the article which was seen as a further government endorsement of the positions.

Analysts said it was not surprising that China would speak out against the deal but it might just be bluster as it does not want to lose its position in major ports such as Felixstowe in the UK, Rotterdam, Europe, Australia, South America, and Asia. CK Hutchison however would retain its Chinese ports meaning China does not have to approve the deal.

The sale of the two terminals in Panama at Balboa and Cristobal was positioned as a parallel but separate transaction. The government of Panama has already said it would be reviewing the sale and now Bloomberg speculates that Panama might use China’s criticism to reject the sale. Trump hailed the BlackRock deal as a key component to regaining control of the Panama Canal but NBC News reported yesterday Trump has also asked for plans to place a U.S. military presence in Panama possibly to seize the canal.

The terms of the sale are for a partnership with BlackRock and MSC Mediterranean Shipping Company’s Terminal Investment Limited (TiL). MSC has taken a low profile in the media creating the impression that the deal is BlackRock’s. 

Hutchison has not responded to the criticism of the deal but the value of its stock plunged as investors feared the sale might not proceed. The company had set the beginning of April as a target for a final agreement.