Panama’s president, José Raúl Mulino, said that he wants to negotiate a new concession contract with the Hong Kong–based Hutchison Holdings subsidiary to continue operating two ports on the interoceanic canal.
His remarks come a week after Panama’s comptroller’s office asked the Supreme Court to annul the contract with Panama Ports, a Hutchison subsidiary that has operated the ports of Balboa and Cristóbal—located at each entrance to the Panama Canal—under concession since 1997.
Following the legal filings, Panama Ports stated that “dialogue” with the Panamanian government was “vital” to discuss the “path forward” for the ports it operates on the canal, at a time when Hutchison is negotiating the sale of its global operations.
“Of course we are going to talk, believe me. But under no circumstances to maintain this abusive contract, contrary to the national interests we have today. Let that be clear here, in China, in Hong Kong, and in the United States,” Mulino said during his weekly press conference.
The comptroller’s office has filed two lawsuits with the Supreme Court seeking to void the Hong Kong company’s concession on grounds of “unconstitutionality” and alleged irregularities in the renewal, which was granted in 2021 for another 25 years.
In April, the comptroller had already accused the company of allegedly failing to deliver $1.2 billion to the Panamanian state from its operations, according to an audit by the public institution.
“No door is closed to talk about the parameters the Panamanian state expects from that concession. We are not going to have our port territory held hostage or allow profits without any benefit to the state,” Mulino said.
That audit was carried out amid pressure from U.S. President Donald Trump, who claims China controls the Panama Canal through Hutchison Holdings.
The U.S. ambassador to Panama, Kevin Marino Cabrera, on Wednesday called for speeding up the end of Hutchison’s concession. “They are a bad operator, they have not done a good job. It is a company of the Chinese Communist Party,” he said.
In March, Hutchison announced the sale of its business for $19 billion to a consortium led by U.S.-based BlackRock. However, China’s market regulator announced a review of the deal. Now, the Asian conglomerate is considering the possibility of bringing in a major strategic Chinese investor to join the consortium so the sale can be approved.
