The highest court in Panama has nulled the ‘Chinese’ contract for the operation of both entrance ports on the Panama Canal.  The Panamanian government took back control and assigned operations to APM Terminals, a subsidiary of the Danish group A.P. Moller-Maersk.

The state takeover comes after a 14-month long saga begun by President Trump who reasserted American interests in the hemisphere and rejected the concept of allowing China to have strategic control over such vital North American infrastructure.

President Trump did not mince words in December of 2024 when he said, “[The Panama Canal] was not given for the benefit of others, but merely as a token of cooperation with us and Panama,” Trump concluded. “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question.”  Marco Rubio was then dispatched as an intermediary in Feb 2025.

Then, last month, Panama’s Supreme Court struck down the law approving the concession contract for Panama Ports Company, a subsidiary of CK Hutchison (China/Hong Kong). The court ruling also invalidated an extension granted in 2021, stripping the port operations of any current legal standing.  Now, Panama has taken over.

(MSM) – The government of Panama has seized control of two ports on either end of the Panama Canal from a Hong Kong conglomerate following a recent ruling by the country’s Supreme Court.

Hong Kong’s CK Hutchison said on Tuesday that Panama’s government had “made direct physical entry into the terminals at Balboa and Cristobal” and assumed “administrative and operational control” over the two ports on the Panama Canal.

The company said the “unlawful” takeover reflects the culmination of a campaign by the Panamanian state against its subsidiary, Panama Ports, following the Supreme Court ruling last month.

According to a government decree, the Panama Maritime Authority has been authorised to occupy the ports for “reasons of urgent social interest”, according to The Associated Press (AP) news agency. (read more)

VIA AP:

[…] Panama’s government announced days ago that it will guarantee the continuity of port operations and job stability, and that APM Terminals, a subsidiary of the Danish group A.P. Moller-Maersk, would temporarily assume the administration of the terminals while a new contract is awarded.

Meanwhile, CK Hutchison Holdings started arbitration proceedings against Panama under the rules of the International Chamber of Commerce. It’s unclear what the impact of the proceedings would be and how long they could take. It also threatened to sue APM Terminals, if it operates the concession. The Danish group responded that it’s not a party to the legal proceedings.

A PPC spokesperson told local media last week that the company was seeking an agreement with the Panamanian government to continue operating. (more)