President José Raúl Mulino intends to take over, in collaboration with a private partner, the direct management of the Balboa (Pacific) and Cristobal (Atlantic) container terminals.
Panama – A new twist in the saga of the 43 ports put up for sale by CK Hutchison. Panamanian President José Raúl Mulino announced the government’s intention to assume, in partnership with a private entity, the direct management of the Balboa and Cristobal container terminals, located at the Pacific and Atlantic entrances of the Panama Canal, respectively. The move will proceed if the judiciary upholds the request of the Comptroller General, Anel Flores, to cancel the 25-year concession held by Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison.
The dispute has taken on geopolitical significance following criticism from former U.S. President Donald Trump, who denounced Chinese presence in the terminals and questioned the sovereignty of the canal, despite the latter remaining under the management of a national authority. His statements helped trigger the sale of CK Hutchison’s 43 container terminals to a consortium formed by BlackRock and MSC, a deal opposed by Beijing and still blocked.
The transfer of management to a state entity could break the deadlock, but the final decision rests with the Supreme Court of Panama, which must rule on the two lawsuits filed by the Comptroller General. According to the latter, the concession renewal did not comply with the required legal procedures, including approval from his office.
