A cargo ship sails past the Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, March 13, 2025. Photo: VCG

Hong Kong-based CK Hutchison Holdings (CKHH) expressed strong disagreement in a new announcement on Thursday after the Panamanian government on Monday issued a decree ordering the occupation of two ports at the entrances of the Panama Canal.

According to the announcement, which was released on the official website of Hong Kong Exchanges and Clearing Limited (HKEX) on Thursday, representatives of the Panama State made direct physical entry into the terminals at Balboa and Cristóbal operated by CKHH's subsidiary Panama Ports Company (PPC) and took over administrative and operational control of the terminals.  

As the company understands, the concession was deemed to be terminated as of Monday, and PPC ceased all operations at the terminals at the two ports on the same day, according to the announcement.

PPC has been advised that the ruling, the executive decree and corresponding actions taken by the Panama State relating to the operations of PPC's terminals at the two ports are inconsistent with the relevant legal framework and the law that approved the concession contract, said the company.

The company's board strongly disagrees with the ruling, the executive decree and corresponding actions in Panama. CKHH said that it continues to work with its legal counsel, has reserved all its rights, and intends to take all legal steps properly available to it to protect the Group's interests including recourse to additional national and international legal proceedings in the matter, according to the announcement.

The latest's announcement followed the company's Tuesday statement, in which it expressed objection to the Panamanian government's takeover of the assets, personnel and operations of CKHH's subsidiary PPC.  

The Chinese Foreign Ministry on Tuesday vowed to firmly protect the legitimate and lawful rights and interests of its companies when asked to comment on Panamanian authorities' control of two ports on the Panama Canal from CKHH.

Commenting on the matter, spokesperson Mao Ning said at a press conference on Tuesday that China's position on relevant Panamanian ports is clear. "I believe you have noticed that the company concerned has issued a statement, saying that it will reserve all rights including to proceed legally. China will firmly protect the company's legitimate and lawful rights and interests," Mao said.

The HKSAR spokesperson on Tuesday also reiterated that the earlier ruling by the Supreme Court of Justice of Panama, which declared the operation of the two Panamanian ports by the company concerned unconstitutional, disregarded facts and breached faith. The company concerned had already initiated and commenced arbitration proceedings. 

Global Times