What Happened
Panama’s Supreme Court of Justice upheld the government’s decision to expropriate 41 properties on Isla Margarita, Colón, linked to Panama Colon Container Port (PCCP), the former concessionaire for the port and container yard at the Atlantic entrance to the Panama Canal.
The full court declined to admit both a constitutional protection appeal and an unconstitutionality challenge against Executive Decree No. 90 of October 20, 2025, issued by the Ministry of the Presidency to order the expropriation.
Legal Challenges Rejected
The first ruling, on the constitutional protection appeal, was presented by magistrate Miriam Cheng Rosas and backed unanimously by the rest of the court. The appeal had been filed by T&T Despacho Legal on behalf of Landbridge Port Services (Hong Kong) Limited, a former PCCP partner.
Landbridge continues to pursue claims and arbitration proceedings in Panama and in Delaware, in the United States, where it seeks recognition of ownership over 50% of PCCP’s shares.
PCCP also attempted to overturn the expropriation through an unconstitutionality lawsuit against articles 1 through 5 of the decree, but the court rejected that case as well. Magistrate Maribel Cornejo, who served as rapporteur, said the filing lacked sufficient relevance and specificity.
Why the Government Moved Forward
The expropriation was ordered by President José Raúl Mulino in October 2025 as part of a push to recover land needed for a new port facility. The decree cited urgent social interest as the basis for the measure, with the stated goal of allowing the Panamanian state to begin construction in the area.
The 41 properties are adjacent to two seabed concessions that the Panama Maritime Authority granted to PCCP in 2013 for development of the port project. Those concessions were later canceled after multiple contractual breaches were documented, including delays in the work schedule, expired guarantees, and unpaid amounts owed to the authority.
Background on the Dispute
The land at the center of the case once formed part of former U.S. military bases in the old Canal Zone before passing into Panamanian jurisdiction. The properties were already under a seizure order since June 2025 as part of Landbridge’s civil lawsuit against PCCP.
The decision reinforces the government’s control over a strategically located stretch of land at the Atlantic entrance of the canal, an area tied to Panama’s port operations and long-term logistics ambitions. It also closes one more legal avenue for PCCP and its former partner as the broader dispute over the Isla Margarita project continues.
Mulino has repeatedly criticized the handling of the concession, which has remained intermittently paralyzed in recent years. During the administration of Laurentino Cortizo, the concession had also faced serious risk after the Comptroller General certified breaches, delays, and the expiration of guarantees.