The Panama Canal's Port of Balboa, managed for years by Hong Kong-based CK Hutchison Holdings, is now under the operational control of Panamanian maritime authorities 2026, took control of two ports on the Panama Canal from Hong Kong-based CK Hutchison after its concession was annulled following pressure from the United States.

Panama City (AFP) - Panamanian maritime authorities took control Monday of two ports on the Panama Canal from CK Hutchison after the Hong Kong-based conglomerate’s concession was annulled following pressure from the United States.

“The Panama Maritime Authority has taken possession of its ports and guarantees the continuity of operations,” an official said after the Panamanian Supreme Court annulled Hutchison’s contracts to operate the ports.

The court ruling was the latest legal move to ricochet through the interoceanic waterway, which handles about 40 percent of US container traffic and five percent of world trade.

The Central American country has been swept up in broader tensions between Washington and Beijing, with US President Donald Trump claiming, without providing evidence, last year that China effectively runs the canal.

Panama has always denied Chinese control over the 80-kilometer (50-mile) waterway, which is used mainly by the United States and China.

Nevertheless, in January, the country’s supreme court had declared as “unconstitutional” the contract which had allowed Hutchison to manage the ports of Balboa on the Pacific and Cristobal on the Atlantic since 1997.

Hutchison had asked the Panamanian government to enter into negotiations to allow it to continue operating the two terminals, and on Friday a company spokesperson said such talks were necessary to “avoid chaos.”

Publication of the ruling in the official gazette Monday effectively finalized the legal process, and the decision is not subject to appeal. The measure was formalized by a decree after publication in the gazette.

“The Panama Maritime Authority has taken possession of its ports and guarantees the continuity of operations,” ports director Max Florez told reporters.

He said an 18-month transition period now begins, with the ports being operated by two other companies before contracts are awarded under a new international tender.

APM Terminals, a subsidiary of the Danish Maersk group, will operate the port of Balboa, and Terminal Investment Limited, owned by the logistics giant MSC, will operate the port of Cristobal.

Labor Minister Jackeline Munoz assured there would be “no layoffs” at the two terminals, which employ around 1,200 people.

This view shows the Port of Balboa at the Pacific Ocean entrance to the Panama Canal

Following the court’s January ruling, the Panama Maritime Authority had said a division of Maersk Group would temporarily take over operation of the facilities.

Last week, Hutchison warned of possible legal action against Maersk and others over the annulment of its contract. And the Hong Kong company has said it would challenge Panama’s decision before the International Chamber of Commerce.

US Ambassador to Panama Kevin Cabrera defended the actions by Panamanian authorities, saying they have the right “to have their judicial system make its own decisions.”

The Panama Canal was built by the United States, which operated it for a century before ceding control to Panama in 1999.