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Frank Tang

A senior Panamanian official said on Monday that Panama will remain flexible and potentially reach an agreement with CK Hutchison as the Latin American country navigates the geopolitical rivalry between the United States and China.
“We are working on a plan in case that [Panama’s Supreme Court] ruling goes against the extension of the contract” for CK Hutchison, said Jose Ramon Icaza, Panama’s minister of canal affairs.
“In that case, we have to step in as the Panama Maritime Authority to take control of that concession, without generating a disruption of the supply chain,” he said in an event with the Atlantic Council’s Adrienne Arsht Latin America Centre on Monday.
CK Hutchison, owned by Hong Kong billionaire Li Ka-shing, holds a 90 per cent stake in Panama Ports Company (PPC), which had a 25-year concession to operate the Balboa and Cristobal ports that was renewed in 2021.


However, the comptroller general filed two suits with the Panamanian Supreme Court in late July, aiming to declare the agreement unconstitutional and nullify the contracts on the basis that the renewal did not follow the required legal steps.
“The other scenario that could happen is that at some point the Republic of Panama can have a mutual agreement with CK Hutchison, and have an orderly transition of those port concessions,” the minister said.
The Hong Kong conglomerate earlier planned a US$22.8 billion deal with a BlackRock-led consortium in March on the sales of its 43 ports worldwide, including the two Panama ports.
The deal, however, became a victim of broader frictions between the US and China.
As US President Donald Trump repeatedly brought up the possibility of retaking the canal, Panamanian President Jose Raul Mulino announced in February plans to quit the Belt and Road Initiative, Beijing’s signature global infrastructure project, following his meeting with US Secretary of State Marco Rubio.
Beijing has shelved the approval of the proposed sales, instead pushing for Chinese investors, including state-controlled COSCO, to be included in the buyer consortium.
Icaza said Panama is getting prepared for whatever happens to those port concessions and will safeguard global supply chains.
“We don’t control the scenarios. But what I can say is that President Mulino and a few members of his cabinet, including myself, are working on a plan for any of those scenarios,” he said.
“If something happens with those concessions, and we have to step in, [we’ll] be ready to manage those concessions with an interim operator and then do a bidding process for a new concession if that is the ruling and the judgment of the Supreme Court.”
The Panama minister added that it could take “maybe between 12 to 18 months” to prepare a tender to market once Panama is ready for a new concession contract.


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The Port of Balboa, located at the entrance to the Panama Canal in Panama City, is managed by the Hong Kong company CK Hutchison. Photo: AFP

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Balboa is one of two Panama Canal ports operated by a unit of CK Hutchison. Photo: Reuters

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A cargo ship transits through Panama Canal Cocoli locks in Panama City on February 21. Photo: AFP

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CK Hutchison has revealed that it plans to invite a mainland Chinese firm to join a consortium behind the deal as a “significant member”. Photo: Sam Tsang

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Panama Canal Authority administrator Ricaurte Vasquez said in an interview that the CK Hutchison ports deal could result in a concentration of operators that would be “inconsistent with neutrality”. Photo: Reuters

Lin Jian says China respects Panama’s sovereignty over the canal. Photo: Kyodo

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Lawyers Julio Macias (left) and Norman Castro (right) have contended that the concession bypassed mandatory public tender requirements. Photo: X/Destino Panama

The Panamanian government has said it is closely monitoring the potential sale of the port operations, which remains subject to its approval. Photo: Reuters

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Panama is still open to being flexible and reaching an amicable agreement with CK Hutchison, owned by Hong Kong billionaire Li Ka-shing


Panama is still open to being flexible and reaching an amicable agreement with CK Hutchison, owned by Hong Kong billionaire Li Ka-shing.


Panama ports deal: CK Hutchison gets encouraging signs from Panamanian government

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Panama is still open to being flexible and reaching an amicable agreement with CK Hutchison, owned by Hong Kong billionaire Li Ka-shing

Panama is still open to being flexible and reaching an amicable agreement with CK Hutchison, owned by Hong Kong billionaire Li Ka-shing