Panama Seizes Control of Canal Ports from HK Conglomerate Following Supreme Court Ruling

World News

Panama Seizes Control of Canal Ports from HK Conglomerate Following Supreme Court Ruling

45 minutes ago

News sources:

SCMP

LATIMES

ALJAZEERA

LEMONDE

Panama Seizes Control of Canal Ports from HK Conglomerate Following Supreme Court Ruling

Credited from: LATIMES

Panama's government has taken control of two canal ports from CK Hutchison.
A Supreme Court ruling declared the company's concession unconstitutional.
The takeover is part of a broader U.S.-China rivalry affecting Panama.
APM Terminals temporarily assumes operations to ensure job continuity.
CK Hutchison has threatened legal action against the Panamanian government.

The Panamanian government has issued a decree taking control of two key ports at the Panama Canal from Hong Kong firm CK Hutchison, following a Supreme Court ruling that declared the company's operating concession unconstitutional. This decision authorizes the Panama Maritime Authority to occupy the Balboa and Cristobal ports for “reasons of urgent social interest,” including control over all movable property found there, such as cranes and computer systems, according to SCMP and LA Times.

The legal saga surrounding these ports is set against the backdrop of U.S.-China tensions. Former U.S. President Donald Trump had previously accused China of indirectly operating the Panama Canal, igniting a heated response from both nations. The dispute complicated CK Hutchison's plans to sell the ports to a consortium that includes U.S. investment firm BlackRock, as Chinese intervention effectively halted the deal, according to Al Jazeera and Le Monde.

SCMP and LA Times.

CK Hutchison has called the government’s actions “unlawful” and indicative of a broader attack against its subsidiary, Panama Ports Company (PPC). The company has already initiated arbitration proceedings under the rules of the International Chamber of Commerce, threatening to pursue legal actions against any parties operating the ports during this tumultuous time, with claims of “serious risks to the operations, health, and safety” at the terminals, according to Al Jazeera and Le Monde.