On January 1, 2026, the Panama Canal celebrated a significant anniversary under full Panamanian control since being transferred from United States control on December 31, 1999. Since that date, it has generated $31.231 billion for national treasury contributions - with $2.965 billion coming in during fiscal year 2025 alone! - underscoring its role as an engine of economic development.
Panama Celebrates 26th Anniversary of Control
The Panama Canal Authority highlighted their key achievements, such as their 2016 expansion that added a third lane for larger vessels carrying three times more cargo than was possible with original locks. This nearly decade-long project cost $5 billion and increased capacity by 3-6% of global trade. An $8.5 billion investment roadmap for the coming decade was also laid out, prioritizing energy corridor, new ports, and freshwater reservoir projects as crucial operational needs.
Sustainability efforts were reinforced, with programs to optimize water use, cut emissions and build climate resilience. Panama Canal's contributions have enhanced logistical competitiveness and population wellbeing while strengthening Panama's position as an international maritime trader.
Resolution of US-Panama Canal Conflict
Panamanian President Jose Raul Mulino declared on January 3, 2026, that diplomatic efforts had successfully resolved their canal dispute with the United States and resolved any threats made by US President Donald Trump in 2025 to reclaim it due to Chinese control through CK Hutchison Holdings' operation of Balboa and Cristobal terminals. Mulino noted that these diplomatic efforts had restored respect, trust, and cooperation - with Panama now actively cooperating against international crime against which Washington was actively campaigning.
Mulino dismissed dire forecasts during his New Year address to the National Assembly, assuring them that Panama remains in charge of its canal. Built by the US in 1914 and then transferred under 1977 Torrijos-Carter treaties, Panama had rejected US demands for free transit as these would violate bilateral agreements and were therefore outlawed.
CK Hutchison Ports Deal at 2026 Crossroads
Geopolitical tensions remain elevated over CK Hutchison's proposed sale of 43 terminals across 23 countries, including Panama Ports Company's strategic Balboa and Cristobal facilities in Panama Ports Company, led by BlackRock. Announced amid Trump's trade war renewal, the deal faces deadlock between US security concerns and Beijing's insistence on protecting interests--potentially delaying completion until 2026 or risking collapse altogether.
Anel Flores filed suit in July 2025 alleging contract renewal irregularities; US Ambassador Kevin Marino Cabrera voiced criticism about operator performance while CK Hutchison's Frank Sixt reported delays but strong earnings growth from port operations. Beijing is reported to seek majority stakes and veto rights in Cosco while negotiations on bifurcated structures for Panama assets continue.
China expressed strong frustration over a destroyed friendship park near the canal, signaling its Latin American ambitions against US hemispheric dominance. Analysts view 2026 as the year which will make-or-break this deal and affect Li Ka-shing's empire and global port ownership.
Launch of Natural Gas Pipeline Project
President Mulino revealed the commencement of a major natural gas pipeline project along the Panama Canal during a January 2026 trip to Japan, alongside Canal Affairs Minister Jose Ramon Icaza and Administrator Ricaurte Vasquez Morales. Approved by Panama Canal Authority's board, this initiative seeks to create an energy corridor through an auctioned concession process; prequalification begins this year while selection should occur by Q4 2026.
As one of the canal's premier investments, this pipeline promises 6,500 construction jobs and 9,600 operational roles during building, as well as $160 million annual state revenue during operation and $590 million a year during construction - supporting revenue diversification, intermodal hubs, ports and roads without additional water consumption. Economic impact estimates put its potential economic benefit at $2.7 billion over its lifetime - supporting revenue diversification while at the same time increasing state revenue by over $1.5 billion each year during operation and $2.7 billion overall during its lifetime of use.
Panama's goal is to boost global energy market competitiveness while maintaining Panama Canal's central maritime role amid shifting trade dynamics.