CK Hutchison objects as Panama Ports Company forced to cease terminal operations

Earlier this week, the Republic of Panama made direct physical entry into the terminals at Balboa and Cristobal operated by CKHH’s subsidiary, Panama Ports Company, S.A. (PPC) and took over administrative and operational control of PPC’s terminals at the two ports, also excluding representatives of PPC from the terminals. 
 

PPC owner CK Hutchison Holdings (CKHH) says the takeover of the two terminals reflects the culmination of a campaign by the Panama State against PPC and the concession contract over the past year. 

CKHH says that an Executive Decree issued by the President of Panama mandated an “occupation” by the State of “all movable property” of PPC, with the participation of all relevant organs of the State.  Simultaneously, government representatives arrived without invitation to the terminals and informed representatives of PPC that the concession no longer exists and that PPC must cease operations. PPC employees were told they would be transferred out of PPC, must not communicate with PPC, and must comply with government instructions, under threat of criminal prosecution.  The State now has control of the terminals. 
 

Based on the referenced publications, statements by officials, and the Panama State takeover of the terminals, CKHH understands that the concession granted to PPC for the operation of the terminals at the ports of Balboa and Cristobal was deemed to be terminated as of 23 February 2026. 
  


CKHH says the actions and instructions of the Panama State made it impossible for PPC to continue its operations and, consequently, PPC ceased all operations at the terminals at Balboa and Cristobal on 23 February 2026.
  


CKHH considers the Ruling, the Executive Decree, the purported termination of PPC’s concession, and the takeover of the terminals to be unlawful.  The actions by the Panama State also raise serious risks to the operations, health and safety at the Balboa and Cristobal terminals.  None of the actions by the Panama State were advised to or co-ordinated with PPC.  The Panama State is therefore responsible for all harm and damage caused by the confiscatory actions it has taken.
  


PPC and CKHH say they will continue to consult with their legal advisors regarding the Ruling and forceful takeover, the purported termination of PPC’s concession and all available recourse including additional national and international legal proceedings against the Republic of Panama and its agents and third parties colluding with them, to reserve all rights and recourse against them, in relation to this matter.