The Hong Kong-based conglomerate CK Hutchison Holdings has formally requested negotiations with the Panamanian government. The company aims to continue operating two critical ports at the Panama Canal following a Supreme Court ruling that annulled its long-term concession. A company spokesperson warned of potential operational “chaos” if a resolution is not found.
This request comes after Panama’s Supreme Court of Justice declared the concession contract for the Balboa and Cristóbal ports unconstitutional in January. The ports, operated by Hutchison subsidiary Panama Ports Company (PPC) since 1997, are located at the Pacific and Atlantic entrances to the canal, respectively. President José Raúl Mulino subsequently announced that Danish shipping giant Maersk would temporarily assume operations.
Company Calls for Dialogue to Avert Chaos
Alejandro Kouruklis, the spokesperson for PPC, publicly called for a dialogue table between CK Hutchison Holdings and the executive branch. He emphasized the need for a reasonable solution to the court’s decision during an interview on Panamanian Radio Red. The company’s primary concern is maintaining continuity at the vital terminals.
“We request that there be a conversation table between C.K. Hutchison and representatives of the Executive to seek a reasonable solution to this Court decision,” said Alejandro Kouruklis. [Translated from Spanish]
Kouruklis issued a stark warning about the consequences of inaction. He argued that specific steps are needed to allow ongoing operations, stating the alternative would be severe disruption. The spokesperson expressed the firm’s willingness to engage in comprehensive renegotiations on all terms.
“We need specific steps to be able to continue operating, because if not, from one day to the next there will be chaos,” Kouruklis warned. [Translated from Spanish]
Legal and Commercial Stakes Are Immense
The court’s ruling has injected significant uncertainty into the future of the ports. These facilities handled 38 percent of the nearly 10 million containers that moved through Panama in 2025. The legal battle also complicates a massive global business deal. Hutchison Holdings is in the process of selling a global ports portfolio, including the Panamanian assets, to a consortium led by U.S. firm BlackRock for $22.8 billion.
In response to the government’s plan, CK Hutchison threatened Maersk with legal action last week. The company said it would take steps if Maersk attempted to administer the ports without its consent. Furthermore, the firm announced its intention to challenge the Supreme Court’s sentence before the International Chamber of Commerce in Paris, seeking arbitration for what it claims are “serious damages.”
Kouruklis reiterated that executing the court’s ruling would lead to inevitable consequences, primarily a paralysis of port activities. The Supreme Court’s justification for its January ruling focused on constitutional violations. It found the concession, renewed for 25 years in 2021, was disproportionately tilted in favor of the company to the detriment of the Panamanian state. This landmark decision is part of a broader judicial scrutiny of major contracts in the country, a trend covered in reports on the corte suprema.
The situation places the Mulino administration in a complex position. It must balance the enforcement of a judicial order with ensuring the seamless operation of critical national infrastructure. The outcome of any negotiations, or the failure to hold them, will have immediate repercussions for global shipping logistics and Panama’s reputation as a stable maritime hub. The government’s approach to this dispute may signal its stance on other foreign investments, similar to tensions explored in articles about acciones legales and diplomatic relations.