---
title: "Panama Asks Cosco to Reconsider Suspension at Balboa After Court Voids Terminal Deal"
date: 2026-03-16
author: ""
url: https://panamadaily.news/panama-asks-cosco-return-to-balboa-port/
categories:
  - "Business"
  - "News"
  - "Politics"
tags:
  - "Balboa"
  - "Cosco"
  - "Jose Ramon Icaza"
  - "Panama Canal"
  - "PPC"
---

# Panama Asks Cosco to Reconsider Suspension at Balboa After Court Voids Terminal Deal

## What Happened

Panamanian authorities on March 13 urged Chinese state-linked shipping giant Cosco to reconsider its decision to suspend operations at the Balboa port, following a court ruling that annulled a long-standing contract for canal terminals. Cosco had said earlier this week it would stop using Balboa after the court voided the concession that allowed a subsidiary of Hong Kong-based CK Hutchison Holdings to operate two terminals since 1997.

## Background

Panama took back control of the trans-oceanic waterway on Feb. 23, 2026, and the move has intensified diplomatic and commercial tensions tied to the canal’s management. Minister for Canal Affairs Jose Ramon Icaza told reporters the Cosco suspension “really took us a bit by surprise,” noting that Cosco’s cargo represents about 4% of the port’s throughput. Panama recorded almost 10 million containers through its ports in 2025.

The dispute has taken on a geopolitical tone. The article reports China warned Panama of possible “payback” after the court decision, while U.S. President Donald Trump in 2025 asserted, without providing evidence, that China effectively runs the canal. Panama has consistently denied that China controls the 80-kilometre waterway, which is used extensively by both the United States and China.

## Commercial and Political Context

The reporting also recalls the commercial history of Panama Ports Company (PPC), which operated the Balboa and Cristóbal terminals for nearly 30 years until Feb. 23, 2026. The government has highlighted payments tied to its 10% equity stake in PPC: Panama received what the article characterises as $160 million over 30 years, and a notable $150 million contribution appeared on May 21, 2021 after a long period during which no dividends were paid. Shortly after that payment, the Panama Maritime Authority’s board declared itself in permanent session to discuss the concession.

## What This Means

Cosco’s temporary withdrawal from Balboa would affect a measurable share of port traffic and highlights how legal rulings over terminal concessions can ripple into trade and diplomacy. Panama’s public appeal for Cosco to return signals a priority on keeping the canal and its ports open to major carriers while the government navigates the legal and political fallout from the annulled concession.

The situation is likely to remain under close watch by shipping firms and foreign governments, given the canal’s central role in global trade and the ongoing sensitivities between Washington and Beijing over influence in the region.