“It’s Our Port” — Panama Moves to Block CK Hutchison’s Canal Contract

A High-Stakes Tug of War Over Panama’s Strategic Terminals

On July 30, 2025, Panama’s Comptroller General Anel Flores formally petitioned the nation’s Supreme Court to review and nullify a 2021 contract extension granted to Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings.

The company operates two key terminals along the Panama Canal — a location critical to global trade. The extension, now under legal fire, had gone mostly unchallenged until CK Hutchison’s recent decision to sell its entire ports business to a consortium led by BlackRock.

What was once a routine corporate divestment has now become a geopolitical flashpoint.

The Legal Challenge: What We Know

Panama’s Comptroller argues the 2021 contract extension was unconstitutional, lacked proper approvals, and was “abusive” toward the country’s interests. The announcement comes amid a wider U.S.-China standoff over control of critical global infrastructure.

• Panama’s government says the ports belong to the nation — and shouldn’t be sold by foreign entities
• A Supreme Court challenge could delay or derail the global terminal sale
• CK Hutchison is exploring adding a Chinese state-owned partner to ease political tension

CK Hutchison and Panama Ports declined to comment on the legal development.

What Happened — In 3 Key Points

• Legal Block on Port Deal: Panama’s top financial watchdog has asked the court to void the 2021 extension that lets CK Hutchison operate two Panama Canal terminals.
• Geopolitical Stakes: The contract review threatens BlackRock’s acquisition of CK Hutchison’s ports portfolio — a deal caught between U.S. and Chinese strategic interests.
• Tax Concerns & Sovereignty: Panama alleges $1.3 billion in lost tax revenue due to exemptions and shell companies at the terminals.

A Broader Strategic Struggle

The ports in question are central to CK Hutchison’s planned divestment of 43 terminals worldwide. The deal, celebrated by U.S. policymakers as a strategic win, has triggered opposition from Beijing — which sees BlackRock as an extension of American influence.

Adding to the tension, CK Hutchison is considering inviting a major Chinese investor like Cosco Shipping to join the consortium, hoping to balance competing pressures.

Meanwhile, Panama’s challenge draws attention to what Flores called “the right of a nation to decide over its own assets.”

The Wake Left Behind

The Panama Canal has long stood as neutral ground in global shipping — a place where geopolitics bowed to logistics.

That assumption is fading fast.

This episode shows how terminal concessions are no longer purely commercial; they are strategic decisions with consequences for national sovereignty and maritime stability.

Governments, investors, and maritime operators must recognize that global port infrastructure is becoming a chessboard of influence.