Panama Top Court Cancels Li Ka-Shing Family’s Canal Port Contracts
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File photo: A CK Hutchison port.
Panama’s Supreme Court ruled Jan. 29 that concession contracts for two ports at either end of the Panama Canal operated by a unit of CK Hutchison Holdings Ltd., the Hong Kong conglomerate controlled by the family of billionaire Li Ka-shing, are unconstitutional and must be canceled.
The ports — Cristobal on the Atlantic entrance and Balboa on the Pacific side — have been operated by Hutchison Ports PPC, known as PPC, under a concession first signed in 1997 and renewed in 2021 for 25 years.
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- Panama’s Supreme Court ruled contracts for CK Hutchison’s ports at both ends of the Panama Canal unconstitutional, ordering their cancellation.
- PPC, the operator, argues the decision lacks legal basis, violates existing agreements, and threatens over $1.8 billion in investment and thousands of jobs.
- China’s Foreign Ministry backs PPC, warning of measures to protect Chinese business interests, amid heightened scrutiny under Trump’s second US presidency.
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Who’s Who
- CK Hutchison Holdings Ltd.
- CK Hutchison Holdings Ltd. (referred to as PPC in the article) is a Hong Kong conglomerate controlled by Li Ka-shing's family. Their unit, Hutchison Ports PPC, operated two Panamanian ports for nearly three decades until Panama's Supreme Court ruled their concession contracts unconstitutional. This decision, announced Jan. 29, has led to their contracts being canceled, causing geopolitical scrutiny and potential legal action from the company.
- Hutchison Ports PPC
- Hutchison Ports PPC (和记港口集团巴拿马运河公司) is a unit of CK Hutchison Holdings Ltd. that operates two ports in Panama: Cristobal and Balboa. Their concession contracts, first signed in 1997 and renewed in 2021, were recently ruled unconstitutional by Panama's Supreme Court. PPC has invested over $1.8 billion in Panama and disputes the ruling, citing legal inconsistencies and potential harm to the country's economy and reputation.
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What Happened When
- 1997-01-16：
- Panama approved concession contracts for the Cristobal and Balboa ports under Law No. 5, initiating container terminal operations by PPC.
- 2021：
- PPC's original concession was renewed for 25 years.
- 2025-01-20：
- During his inauguration address, Donald Trump, upon beginning his second US presidential term, claimed China was 'operating' the Panama Canal.
- After 2025-01-20：
- Panama’s comptroller general’s office announced an audit of PPC’s port business related to the canal, with PPC stating full cooperation.
- 2025-07-30：
- Comptroller general Anel Flores stated he had filed lawsuits at the Supreme Court seeking to void the Cristobal and Balboa port operating contracts.
- 2025-07-31：
- President Jose Raul Mulino declared that if courts invalidated the renewal agreement, the government would reclaim port operating rights and consider a public-private partnership model.
- 2026-01-26：
- China’s Foreign Ministry, through spokesman Guo Jiakun, echoed opposition to the Supreme Court ruling, promising to take 'all necessary measures' to protect Chinese companies.
- 2026-01-29：
- Panama’s Supreme Court ruled the concession contracts for the Cristobal and Balboa ports unconstitutional, stating they must be canceled.
- Late 2026-01-29：
- The Panamanian Supreme Court posted on social media that it had found the 1997 concession contract and related addenda unconstitutional.
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