Panama remains open to reaching an amicable agreement with Hong Kong's CK Hutchison over its port concessions, despite legal challenges and geopolitical tensions, reports Hong Kong's South China Morning Post.

Canal Affairs Minister Jose Ramon Icaza said Panama is preparing for multiple outcomes, including a Supreme Court ruling against the contract extension. In that case, the Panama Maritime Authority would take control to avoid supply chain disruptions.

CK Hutchison, owned by billionaire Li Ka-shing, holds a 90 per cent stake in Panama Ports Company, which operates the Balboa and Cristobal ports under a 25-year concession renewed in 2021.

The renewal is being challenged by Panama's comptroller general, who filed suits to nullify the agreement, citing procedural irregularities.

Icaza said a mutual agreement with CK Hutchison could allow for an orderly transition. If needed, Panama would appoint an interim operator and launch a bidding process for a new concession, which could take 12 to 18 months.

CK Hutchison's US$22.8 billion global ports deal with a BlackRock-led consortium stalled amid US-China tensions. Beijing has withheld approval and is pushing for Chinese investors like COSCO to join the buyer group.

Panama exited China's Belt and Road Initiative in February after President Jose Raul Mulino met with US Secretary of State Marco Rubio. The move was seen as aligning with US interests amid canal-related disputes.