Panama President rules out single operator for canal ports after court nullifies contract

President Mulino says Panama will no longer grant single-operator port contracts. This follows a court ruling that sparked Chinese threats and arbitration.

Insights:
The Panama PAPA Supreme Court has nullified the concession held by Panama PAPA Ports Company, a subsidiary of CK Hutchison Holdings Limited , to operate two strategic ports along the Panama PAPA Canal. This decision, finalized today, February 5, 2026, terminates a nearly three-decade agreement and immediately alters the legal status and operational control of these critical maritime assets. The ruling represents a major shift in the management of infrastructure in Panama PAPA and has prompted immediate legal and diplomatic reactions.
A drone view shows containers docked at Panama Ports Company after Panama’s Supreme Court annulled key port contracts held by the Hong Kong-based CK Hutchison-owned firm, leaving the future of some Panama Canal operations uncertain, in Panama City, Panama, February 4, 2026. REUTERS/Enea Lebrun/File Photo
A drone view shows containers docked at Panama Ports Company after Panama’s Supreme Court annulled key port contracts held by the Hong Kong-based CK Hutchison-owned firm, leaving the future of some Panama Canal operations uncertain, in Panama City, Panama, February 4, 2026. REUTERS/Enea Lebrun/File Photo
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