China's CK Hutchison to cede Panama Canal ports after Supreme Court ruling deemed concession unconstitutional, impacting operations and future bids.
A Chinese company operating ports at the Panama Canal will relinquish control after the country's Supreme Court ruled its concession unconstitutional, reported American Shipper.
Beijing protested the decision against CK Hutchison Holdings of Hong Kong, which controls Panama Ports Company at Cristobal and Balboa.
Panamanian President Jose Raul Mulino stated that the state maritime authority would work with Hutchison until the ruling is implemented to ensure continued smooth operations. He did not specify when that would occur.
During the transition, a local subsidiary of AP Moller-Maersk will operate the ports until a new concession is bid and awarded, Mr. Mulino said.
President Donald Trump has emphasized that US control of the waterway is imperative. In 2025, US investor BlackRock and Mediterranean Shipping Co. of Geneva had agreed to purchase Hutchison for US$22.8 billion, but the deal collapsed after China demanded that state-owned Cosco receive a controlling share.
