The Panama Maritime Authority assured that operations in Balboa and Cristóbal will continue without interruption, while a transition plan is activated to guarantee the stability of the port system.
The reaction of U.S. Senator Marco Rubio to the decision of the Supreme Court of Justice of Panama to annul the concession contract for the ports of Balboa and Cristóbal came this Friday through a message posted on social media.
In his statement, Rubio affirmed that Washington is "encouraged" by the court ruling that declared the port concessions linked to China unconstitutional, without adding further assessments of their political, commercial, or strategic implications.
The message was released a few hours after the Panamanian high court invalidated the contract granted to Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate CK Hutchison Holdings, which for more than two decades managed the main port terminals at both entrances to the Canal.
Rubio's post was one of the first official reactions from Washington after the ruling was announced.
In parallel, the Panama Maritime Authority (AMP) issued a statement assuring that the State has activated a technical transition plan to guarantee operational continuity in the strategic ports.
According to the document, activities in Balboa and Cristóbal will continue to operate normally, without interruptions, and maintaining adequate levels of productivity, efficiency, and quality of service.
The AMP indicated that, during the transition period, it will have the specialized support of APM Terminals as a temporary administrator, with the objective of preserving the stability of the logistics chain and avoiding disruptions to international trade.
Furthermore, it reiterated that Panama, as the owner of the port system, will guarantee the continuity of service and the fulfillment of commitments with shipping companies and operators.
The statement also emphasized the government's intention to move towards an orderly and coordinated transition with PPC, highlighting the importance of maintaining cooperation during this stage. In this regard, the authorities insisted that the process will be carried out within the legal framework, prioritizing the national interest and the stability of the port system. Rubio's statements come in a context where the United States has repeatedly expressed concerns about the presence of Chinese companies in locations considered strategic around the Panama Canal.
These concerns intensified during the administration of President Donald Trump, when senior U.S. officials indicated that the participation of conglomerates linked to China in ports and infrastructure projects could represent geopolitical risks for the region.
During that period, Washington warned of a possible increase in Chinese influence in Central America and the Caribbean, within the framework of the global competition between the two powers.
In the Panamanian case, attention focused particularly on the operation of terminals located at the entrances to the Canal, considered crucial points for world trade.
However, both the Panamanian government, the Panama Canal Authority, and representatives from China repeatedly rejected these accusations.
Panamanian authorities maintained that the concessions were granted under technical, legal, and commercial criteria, without compromising the sovereignty, neutrality, or security of the interoceanic waterway.
China, for its part, denied that its companies operated for political or strategic purposes and defended its participation as part of private investments within the framework of international trade.
The Panama Canal Authority also insisted, on several occasions, that port operations do not interfere with the administration or neutrality of the Canal, and that the transit of ships remains under the exclusive control of the Panamanian State. These positions were reiterated in response to the allegations coming from political sectors in the United States.
Following the Supreme Court ruling, the Panamanian government has sought to project a message of stability and continuity. In its statement, the Panama Maritime Authority (AMP) reaffirmed its commitment to protecting the national interest, the strict application of the rule of law, and strengthening the confidence of investors and trading partners.
Furthermore, it emphasized that Panama will continue to be a reliable and strategic partner for global supply chains.
Falling stock prices
The impact of the court decision was also reflected in the financial markets. Shares of CK Hutchison registered a significant drop on the Hong Kong Stock Exchange after the contract annulment was announced. On the day following the announcement, the conglomerate's shares fell between 4% and 5%, reflecting the concerns.
Investors are concerned about the loss of one of their most significant assets in Latin America.
Locally, logistics and foreign trade specialists warn that one of the main challenges for Panama will be to guarantee a rapid, transparent, and technically sound transition that avoids operational delays, cost overruns, or loss of competitiveness compared to other port hubs in the region.
The integration between the Canal, the ports, and the logistics zones is considered one of the country's main strengths.
The question now is what will happen with the sale of ports that CK Hutchison Holdings had underway, because the Panamanian terminals were a crucial part of the package: the operation in Balboa and Cristóbal was included in a global transaction estimated at around $22.8 billion (also referred to as approximately $23 billion), and the Court's ruling in Panama introduces legal uncertainty regarding an asset that was strategic due to its location at the entrances to the Canal.
According to the reported terms of the agreement, the sale included control of 43 ports in 23 countries (199 berths) and had as its main buyers a consortium led by BlackRock, along with Global Infrastructure Partners and Terminal Investment Limited, linked to Mediterranean Shipping Company.
With the Panamanian contract now annulled, the market and the industry are waiting to see whether the operation is frozen, renegotiated excluding Panama, or restructured "in parts," a scenario that had already been explored due to regulatory and political pressures surrounding the port package.
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