Hong Kong-based CK Hutchison reported that Panamanian authorities have threatened their employees with criminal charges if they do not vacate two significant canal ports involved in a legal dispute. The company’s subsidiary, Panama Ports Company (PPC), had its contracts canceled following a Supreme Court ruling in January, prompting CK Hutchison to label the action as ‘unlawful.’ This cancellation pertains to the Balboa and Cristobal terminals that PPC operated for nearly 30 years.
The tensions surrounding these ports have escalated amid concerns from the U.S. about Chinese influence in the Panama Canal region, a critical nexus for global maritime trade. As PPC employees were evicted, they were warned not to communicate with their company. CK Hutchison’s statement indicated that these actions pose significant risks to operations and safety at both terminals, and they are considering legal avenues against Panama.
In response, the Panamanian government announced temporary concessions to Maersk and Mediterranean Shipping Company (MSC) to operate the terminals. These contracts are intended to ensure uninterrupted port operations while a new competitive framework is developed for future concession awards. The Panamanian president clarified that this action does not equate to expropriation but is rather a measure to secure ongoing port functionality.
