PANAMA FLASH! | Panama City – February 23rd, 2026
Supreme Court Ruling Triggers Transition of Panama Port Company Operations (Balboa and Cristobal)
Following the official publication of a ruling by Panama’s Supreme Court of Justice, the concession agreement previously granted to Panama Ports Company (PPC) has been declared unconstitutional, triggering an immediate government-directed transition of operations at the country’s two strategic canal terminals.
The ruling became enforceable upon publication in the Official Gazette today, enabling Panamanian authorities to assume administrative control to ensure operational continuity and safeguard national logistics interests.
Government Assumes Control of Balboa and Cristobal Terminals
Authorities have initiated an administrative takeover of the following facilities:
- Port of Balboa – Pacific entrance to the Panama Canal
- Port of Cristobal – Atlantic entrance to the Panama Canal
The measure has been defined as a temporary occupation intended to maintain uninterrupted port services while a revised concession framework is established.
Government officials have clarified that the action does not constitute an expropriation, and that vessel and cargo operations are expected to continue normally throughout the transition period.
Interim Terminal Management
During the transitional phase, terminal operations are expected to be supported by internationally recognized operators, including:
- Balboa: APM Terminals (affiliated with Maersk Group)
- Cristobal: TIL (Terminal Investment Limited, affiliated with MSC Group)
The interim terminal management arrangement is expected to remain in place for an estimated period of eighteen (18) months, during which the Government of Panama will conduct an international tender process for the award of new long-term concession agreements.
Authorities have indicated that the future concession structure may involve multiple operators, representing a shift from the previous single-operator model.
Canal Transit Operations
It is important to highlight that this development does not affect Panama Canal transit operations managed by the Panama Canal Authority.
Canal scheduling, transit reservations, and vessel movements through both the Panamax and Neopanamax Locks continue to operate normally and independently from port terminal administration
For additional information, please reach out to our operators at operations@nortonlilly.com.pa.
Norton Lilly International (Panama) S.A.
Bldg. 3825 – Office 204
Howard – Panama-Pacifico
Panama, Rep. of Panama
Tel: (507) 304-4600
Main email: operations@nortonlilly.com.pa (24 hours)
