Panama has signalled its intention to intervene directly in the dispute over the management of the Balboa and Cristobal container terminals, situated at the Atlantic and Pacific ends of the canal, by taking over operations in collaboration with a private entity. This shift could take place if Panama’s judiciary upholds a request from the country's comptroller general to annul the current 25-year concession held by Panama Ports Company, a subsidiary of Hong Kong’s CK Hutchison. The move was announced by the President of Panama, José Raúl Mulino.
The controversy surrounding the two terminals extends well beyond Panama’s borders. It became a geopolitical flashpoint following denunciations by former US President Donald Trump, who condemned Chinese control over the terminals and went as far as to cast doubts over the entire canal’s sovereignty, despite the fact that the canal remains under the oversight of a specific national authority. Trump's remarks triggered the start of a process to sell off all 43 container terminals operated by CK Hutchison, through Hutchison Port Holdings, to a consortium formed by BlackRock and MSC. That deal, however, was met with strong resistance from the Chinese government and remains in limbo.
Detaching Panama’s terminal operations from Hutchison Port Holdings and placing them under state control could help break the current deadlock. For that to happen, Panama’s Supreme Court must accept the legal motion filed by the comptroller general, Anel Flores, seeking to annul the concession contract with Panama Ports. The motion, presented through two separate lawsuits, argues that the renewal process for the concession failed to comply with all required legal procedures, including securing approval from the comptroller’s office.
