Panama Raids CK Hutchison Ports Office After Takeover | Panama Canal Dispute
Panamanian authorities raided the offices of Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, on Thursday, days after the government took control of two strategically important ports at either finish of the Panama Canal. Boxes of documents were reportedly removed during the search, according to Panamanian media.
The raid follows a recent escalation in a dispute stemming from a Panamanian Supreme Court ruling last month that declared unconstitutional the law approving PPC’s concession to operate the Balboa and Cristobal ports. The ruling paved the way for the Panama Maritime Authority to seize control of the terminals under a presidential decree.
CK Hutchison, led by the family of Hong Kong tycoon Li Ka-shing, has vowed to pursue legal action both domestically and internationally to challenge the takeover, calling it unlawful. In a statement released this week, the conglomerate asserted that the court ruling, the executive decree, and subsequent actions by the Panamanian state are “inconsistent with the relevant legal framework and the law that approved the concession contract.”
The dispute centers around concessions originally granted decades ago. The Supreme Court’s decision to annul those concessions has cast doubt over a $22.8 billion BlackRock-led global ports deal, according to reports. The ports in question are critical to global shipping, handling a significant volume of traffic traversing the Panama Canal.
Following the court’s decision, interim operations of the ports were transferred to A.P. Moller-Maersk and Mediterranean Shipping Company (MSC), according to reports. CK Hutchison confirmed that Panama authorities had threatened its employees with criminal prosecution if they refused to exit the ports after the transfer of control.
The Panamanian government has not yet publicly responded to CK Hutchison’s latest statement regarding legal action. The situation remains unresolved, with CK Hutchison preparing to fight the seizure in both Panamanian and international courts.