Panama is aiming to mitigate geopolitical risks and respond to US pressure by adopting a multi-operator model for its strategic canal after nullifying the concession granted to Hong Kongโs CK Hutchison to operate two of the ports, analysts have said.
Panamanian President Jose Raul Mulino was reported to have vowed on Thursday that his country would โnever againโ grant concession contracts to run the Balboa and Cristobal terminals at each end of the Panama Canal to a single company.
The countryโs Supreme Court of Justice last week stripped the rights from the Panama Ports Company (PPC), a subsidiary of the conglomerate led by Hong Kong billionaire Li Ka-shingโs family.
The PPC has managed the ports since 1997 and renewed the contract for 25 years in 2021.
While Beijing slammed the courtโs decision and vowed to take all necessary measures to safeguard the rights of Chinese enterprises on Friday last week, Mulino offered up a strong response, according to Reuters.
โPanama is a dignified country and will not allow itself to be threatened by any country on Earth,โ he said.