Seatrade-maritime.com: Hutchison claims positive impact to Panama economy with port concessions

CK Hutchison’s subsidiary Panama Ports Company (PPC) that administers the ports of Balboa and Cristobal on each side of the Panama Canal, issued a statement following the announcement last week by Panama’s Comptroller-general asking the Supreme Court to declare null and void Panama Ports Company’s contract.

The Hong Kong-based company said it operate the terminals “under the concession contract approved by Law 5 of January 16, 1997, and its respective addenda.”

“PPC, a member of Hutchison Ports, is among several ports around the world being under discussion for sale, a process that is ongoing and has not yet been concluded. At the appropriate time within the sale process, PPC will communicate with relevant parties including the Government of Panama. We affirm that we believe engagement with the Government of Panama is vital to discuss the way forward for PPC and that we want to work with the Government for a better future to support the people of Panama.”

The proposed sale of two ports by CK Hutchison comes at a time when the contracts face both local and international pressure. The contracts have long been a source of controversy domestically and concerns have come to ahead this year, at the same the US administration led by President Donald Trump claims that the contracts with the Hong Kong-headquartered company for the terminals at the Pacific and Atlantic entrances to the Panama Canal give China control over the key waterway with the ability to block access in times of conflict.

CK Hutchison had planned to sell the two Panama ports to a consortium of MSC and BlackRock as part of wider $22.8 billion deal to sell its international terminals business. However, as period of exclusive negotiations came to an end it said it was also talking to a Chinese investor, reportedly Cosco Shipping.

PPC said it “firmly believe that respect for legal protection and the rule of law are essential to provide businesses and investors with the certainty that Panama is a safe country to invest in. Our history of more than 28 years is proof of the positive impact we have generated, by building world-class ports, creating more than 25,000 direct and indirect jobs, and contributing billions of balboas to the Panamanian economy.”

PPC “continues to call for respectful coordination and constructive consultations to protect the concession that has provided high-quality services for the benefit of Panama and the world,” it added in the statement.

Panama Ports Company was formed in 1997, and Hutchison owns 90% of the company, with the State of Panama holding the remaining 10%.

In 2024, Balboa container volume increased by 13.7%, registering 2.63 million teu and Cristobal, container volume grew by 24.6% to 1.11 million teu.

During the first half of 2025, both terminals posted the largest growth in Panama, with Balboa box volumes up 5% to 1.3 million teu while Cristobal registered an increase of 11.5% to 630,000 teu.

Talking to local media in his weekly press conference, Panama’s President Jose Raul Mulino said Panama would await the court’s decision but suggested a new public-private partnership might be formed to run the terminals.

China’s Ministry of Commerce said Thursday that the Chinese government will conduct reviews and supervision on the sales of CK Hutchison Holdings’ overseas port assets in accordance with the law.

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