The concession covers the strategic Balboa and Cristobal ports located near the Panama Canal. The renewal, which took place in 2021, has been under audit since January 2025. According to Comptroller General Anel Flores, preliminary findings from the audit indicate that Panama may have forgone up to $1.3 billion in tax revenue and other benefits due to the terms of the contract.
CK Hutchison owns a 90% stake in Panama Ports Company. In March 2025, a consortium led by U.S. investment firm BlackRock announced a $22.8 billion deal to acquire the majority of CK Hutchison’s global port assets, including the Balboa and Cristobal terminals.
However, the ongoing audit and legal reviews in Panama may impact the deal. In February, Panama’s Attorney General issued a binding opinion stating the port concession renewal was unconstitutional. The final decision now rests with the country’s Supreme Court.
Once the audit is complete, the findings will be submitted to Panama’s Maritime Authority, the regulatory body responsible for overseeing the country's port operations.
Legal experts have noted that if the audit confirms irregularities or if the Supreme Court rules the contract unconstitutional, the concession could be revoked. This development could present a challenge to BlackRock’s acquisition plans.
The transaction has also drawn attention amid geopolitical tensions. Former U.S. President Donald Trump publicly supported BlackRock’s move, highlighting ongoing concerns in Washington about Chinese and Hong Kong-linked firms operating in Panama’s maritime sector.
The outcome of the audit and legal proceedings is expected to have significant implications for Panama’s port operations, foreign investment climate, and regional shipping logistics.
