Panama Ports Company Concession in Jeopardy
Following Panama’s Comptroller announcement about seeking to void the concession for the terminal operations in Balboa and Cristobal, CK Hutchison has issued a statement calling for coordination with the Government of Panama. The Hong Kong-based company is determined to protect the concession, which is considered a vital asset, despite the political turmoil that has ensued in 2025.
The Panama Ports Company, established in 1997, is owned by Hutchison (90%) and the Government of Panama (10%). It operates the terminals at both ends of the Panama Canal, with Balboa being the larger terminal handling around 2.3 million TEU in 2024, and Cristobal processing over 1 million TEU. However, the majority of the volume at these ports comprises transshipments, with Cristobal at 90% and Balboa at 95%.
In response to Panama’s legal actions seeking to nullify the contract extension for the terminals, Panama Ports Company, through Hutchison, emphasized the need for “respectful coordination and constructive consultations” to safeguard the concession. The company highlighted its positive impact on Panama, including job creation and economic contributions.
Amid pressure to reduce ties with China, Panama has faced criticism over the port terminal concession, with the Comptroller’s office claiming the extension was not legally conducted in 2021. President Jose Raul Mulino expressed doubts about the concession’s continuation, hinting at a potential new public-private partnership to manage the terminals.
Additionally, criticisms were raised about the sale process when CK Hutchison agreed to sell its stake in the Panama company to a consortium led by BlackRock and MSC’s Terminal Investments Ltd. Hutchison addressed these concerns, emphasizing the importance of engagement with the Government of Panama for the future of Panama Ports Company.
Furthermore, China has criticized the sale process, alleging U.S. influence and expressing concerns about its impact on global trade. Reports suggest China has demanded involvement from a Chinese company in the consortium. In response, Hutchison revealed plans to explore reworking the deal and potentially involving a major Chinese company in the purchase of its terminal portfolio.