Cheung Kong, affiliated with Li Ka-shing, latest announcement: Being pressured step by step by the Panamanian government with the intent to forcibly take over the port. Whether the port can continue operations is no longer within the company's control.

On February 12, CK Hutchison Holdings issued an update on the latest developments regarding the Panama port dispute on its official website.

Hutchison: Facing relentless pressure from the Panamanian government, attempting to forcibly take over the ports

CK Hutchison Holdings Limited (hereinafter “Hutchison”) announced that it has notified the Republic of Panama of the dispute under the Investment Protection Treaty to safeguard its rights and interests, and has invited Panama to engage in consultations. Hutchison continues to actively seek solutions regarding the actions taken by the Panamanian government, which have affected Hutchison and the Panama port companies. The Panama port company is an indirect subsidiary of Hutchison.

Hutchison’s actions are based on a series of measures by the Panamanian government, including the announcement by the Panamanian Ministry of Justice on January 29, 2026, that the Supreme Court of Panama declared Law No. 5 of January 16, 1997 (“Law No. 5”) unconstitutional.

Law No. 5 has been the legal foundation for the concession agreements under which Panama Port Company has operated the ports of Balboa and Cristóbal in Panama for nearly 30 years. Hutchison believes that the ruling declaring Law No. 5 unconstitutional is unlawful. Although the ruling has not yet been officially published or come into effect, the Panamanian government has taken incremental actions, not only attempting to force Panama Port Company out of port operations but also implementing transitional measures to forcibly take over the ports, without clearly outlining operational plans.

In addition to the dispute notice issued by Hutchison under the Investment Protection Treaty and the voluntary announcement on February 4, 2026, that Panama Port Company has initiated arbitration proceedings under the applicable concession agreements as of February 3, 2026, Hutchison will continue consulting legal advisors and exploring all possible avenues, including further legal actions against the Republic of Panama, its agents, and third parties colluding with them, both domestically and internationally.

In this context, Hutchison notes that:

The Panama Maritime Authority issued a notice on January 30, 2026, stating it will rely on A.P. Moller – Maersk A/S’s affiliate, APM Terminals (hereinafter “APMT”), to act as the temporary manager of the container terminals at Balboa and Cristóbal ports as part of the port transition plan; and

APMT announced on January 30, 2026, that it is willing to take over the temporary operations of these two ports.

Hutchison Ports Limited (hereinafter “Hutchison Ports”) notified A.P. Moller – Maersk A/S on February 10, 2026, that any takeover of management or operations of the Panama ports at Balboa or Cristóbal by APMT or its affiliates, without Hutchison’s consent, at any time or in any manner, would harm Hutchison, Hutchison Ports, and Panama Port Company, and could trigger legal action against APMT and/or its affiliated companies involved.

Despite these developments, Hutchison continues to do its utmost to ensure that Panama Port Company takes all reasonable and feasible measures to protect the involved employees, avoid disruptions to port operations, safeguard the interests of customers and suppliers, and maintain the flow of ships and cargo through the Panama Canal, but only with the approval of the Supreme Court and the Panamanian government.

To date, Panama has not provided any guarantees or clear explanations regarding the operation of Panama Port Company at Balboa and Cristóbal, and continues to push for forced cessation or takeover of the port operations, causing further disruptions and damages. Once the ruling is officially published and Panama Port Company’s concession rights are terminated, the immediate consequence will be that Panama Port Company will be unable to operate the container terminals at Balboa and Cristóbal. At this stage, whether the ports can continue operations entirely depends on actions by the Supreme Court and the Panamanian government, which are beyond Hutchison, Hutchison Ports, and Panama Port Company’s control.

It is worth noting that the attempt by A.P. Moller – Maersk, the Maersk Group, to temporarily take over the ports, was founded in 1904, headquartered in Copenhagen, Denmark, and is the world’s largest container shipping company, with core businesses including container transportation, logistics, and terminal operations.

As of the close on February 12, CK Hutchison’s stock price fell 0.86%, marking the third consecutive day of decline, with a total market capitalization of HKD 243.2 billion.

John Lee: Urges the Panamanian government to respect contractual commitments

Ministry of Foreign Affairs: Will firmly defend the legitimate rights and interests of Chinese enterprises

Hong Kong SAR Chief Executive John Lee on February 10 expressed strong dissatisfaction with the Supreme Court of Panama’s ruling that the renewal of operations at two Panama ports by a Panamanian port company contracted by the Panamanian government was unconstitutional. He urged Panama to respect contractual commitments and provide a fair and just business environment for local law-abiding enterprises.

Before attending the Executive Council meeting today, Lee told the media that the SAR government’s stance is clear: opposing any foreign government using coercion, pressure, or other unreasonable political means in international trade relations. The Commerce and Economic Development Bureau had already summoned the Panamanian Consul General in Hong Kong last week to express strong dissatisfaction with the ruling. The SAR government believes that Panama’s reversal on legitimate trade relations damages Panama’s credibility, will have a profound negative impact on the local business environment and economic development, and severely undermines international trade rules.

Lee pointed out that Hong Kong enterprises operating and investing in Panama should receive fair and reasonable treatment and protections. He believes this incident has damaged investor confidence in Panama’s business environment and will lead to a reassessment of current and future investments there. He hopes Panamanian authorities will earnestly safeguard the legitimate interests of enterprises.

According to a report from Zhaobao News citing Singapore’s Lianhe Zaobao on February 8, the Secretary for Commerce and Economic Development of Hong Kong, Chau Cheung-wah, again summoned the Panamanian Consul General in Hong Kong to express strong dissatisfaction over the Panama Supreme Court’s ruling on the renewal of the Hong Kong CK Hutchison port operation rights, criticizing that this move will cause long-term damage to Panama’s business environment and economic development.

On February 7, the Hong Kong SAR government’s Commerce and Economic Development Bureau posted on Facebook that Chau Cheung-wah had again summoned the Panamanian Consul General to express strong opposition to the Panama Supreme Court’s ruling that the renewal of the port operation rights held by Hong Kong CK Hutchison’s Panama port company was unconstitutional.

Chau Cheung-wah reaffirmed the SAR government’s position, criticizing Panama for investing heavily and creating numerous jobs over the years, and condemning Panama’s actions as damaging the country’s credibility, which will have far-reaching negative effects on Panama’s business environment and economic development, and severely undermine international trade rules.

He urged the Panamanian government to respect contractual commitments, provide a fair and just business environment for lawfully operating enterprises, and ensure their legitimate rights and interests are protected. Chau Cheung-wah emphasized that Hong Kong enterprises operating and investing in Panama should be treated fairly and reasonably.

On February 4, Foreign Ministry spokesperson Lin Jian hosted a routine press conference.

A reporter asked about reports that on January 30, the Panama Supreme Court declared that Hong Kong CK Hutchison’s port operation rights at both ends of the Panama Canal were unconstitutional. U.S. Secretary of State Blinken said the U.S. was encouraged by the ruling. The Chair of the U.S. House of Representatives’ China Select Committee, Moren, stated that the Western Hemisphere does not welcome Chinese “malicious influence.” What is China’s response?

Lin Jian responded that China has already responded to the Panama Supreme Court’s ruling on the ports, and the Hong Kong SAR government has also issued a statement. China will firmly defend the legitimate rights and interests of Chinese enterprises.

He emphasized that the U.S. actions again reveal Cold War mentality and ideological bias. Who is seeking to dominate the canal? Who is using the rule of law to undermine international law? The international community sees it clearly.

On January 30, Foreign Ministry spokesperson Guo Jiajun said China would take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

On March 4, 2025, CK Hutchison announced plans to transfer its holdings and operations of 43 ports across 23 countries, including ports at both ends of the Panama Canal, with a total value of USD 22.8 billion, to a consortium led by BlackRock.

On July 28, 2025, CK Hutchison issued a statement that the exclusive negotiations with the consortium had expired. Despite this, the company was still in discussions with the consortium members and planned to invite major strategic investors from mainland China to join as key members. The company stated that no transaction would be made before obtaining all relevant regulatory approvals.

In August 2025, Hutchison’s management indicated that the deal was entering a new phase, including inviting mainland Chinese investors to participate, and hoped to obtain all necessary regulatory approvals, though the process might take longer than initially planned. The transaction was not expected to be completed in 2025.

(Original source: Daily Economic News)