Panama supreme court cancels Hong Kong company’s canal concession

Panama’s supreme court on Thursday ruled the concession held by Panama Ports Company (PPC), a subsidiary of Hong Kong’s CK Hutchison, was unconstitutional, the country’s president, José Raúl Mulino, said on Friday. Mulino said maritime officials would continue working with PPC until the court’s ruling was executed to ensure port operations at each end of the canal continued without interruption.

He said that once the concession was formally ended, a subsidiary of AP Moller-Maersk would operate the ports in a transitional phase until a new concession could be awarded, and he said in a recorded video address that “Panama moves forward, its ports will continue operating without interruption”.

The court’s decision followed an audit by Panama’s comptroller that alleged irregularities in a 25-year extension of the concession granted in 2021. The court issued only a brief statement and gave no guidance on what would happen to the ports next or on any timescale for implementing the ruling.

PPC said it had not been notified of the decision, insisted its concession was the result of transparent international bidding, and said the ruling lacked a “legal basis and jeopardises not only PPC and its contract, but also the wellbeing and stability of thousands of Panamanian families” and the rule of law; it said it reserved the right to proceed legally in Panama or elsewhere.

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