Hong Kong firm appeals for legal protection of investors as its Panama
Ports contract faces lawsuits
[August 02, 2025] By
KANIS LEUNG
HONG KONG (AP) — A subsidiary of a Hong Kong conglomerate entangled in
U.S.-China tensions appealed on Friday for legal protection for
businesses in Panama after the company's contract over its Panama Canal
port assets has been faced with lawsuits in the Central American
country.
Respect for the rule of law is essential to assure businesses that
Panama is a safe place to invest in, Panama Ports Company, under Hong
Kong-based CK Hutchison Holdings, said in a statement.
Panama’s Comptroller General filed two lawsuits on Wednesday, seeking to
declare unconstitutional a contract that granted the operation of ports
at both ends of the canal to the Hong Kong subsidiary, and to nullify
its renewal four years ago, saying it was “abusive” of Panama's
interests.
In turn, Panama Ports Company said its operations have had a positive
impact, from building world-class ports to creating more than 25,000
direct and indirect jobs and contributing billions of balboas — Panama's
currency — to the country's economy.
It said it wants to work with the government in Panama for a better
future.
“Regarding the ongoing legal actions, we firmly believe that respect for
legal protection and the rule of law are essential in order to provide
businesses and investors with the certainty that Panama is a safe
country to invest in,” it said.
The company operates the ports of Balboa, in the Pacific, and Cristobal,
in the Atlantic, under a concession contract approved in 1997 and
renewed in 2021 for 25 more years. CK Hutchison is controlled by the
family of Li Ka-shing, the southern Chinese city’s richest man.
Panama’s comptroller authority in April said that an audit of Panama
Ports Company found irregularities in the renewal of the concession. But
the company denied allegations that it had failed to pay about $1.2
billion to the Central American country.
Panama President José Raúl Mulino said during his weekly news conference
on Thursday that he fully supported the comptroller’s case and would
await the court’s verdict.
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Workers carry out maintenance at the Pedro Miguel locks of the
Panama Canal during routine upkeep in Panama City, Friday, May 30,
2025. (AP Photo/Matias Delacroix, File)
 “We have all seen what that contract
has costed the Panamanian nation over time,” Mulino said without
elaborating. He alluded to some sort of public-private partnership
for the ports, saying there was a lot of interest from private
companies, but that it was in the early stages and provided no
details.
CK Hutchison Holdings’ initial plan, announced in March, to sell its
port assets in dozens of countries to a group that includes the U.S.
investment firm BlackRock Inc., also got caught up in tensions
between Beijing and Washington.
U.S. President Donald Trump, who has alleged that China interferes
with the canal, initially welcomed that plan. However, it apparently
angered Beijing and drew a review by Chinese anti-monopoly
authorities.
After months of uncertainty, Hutchison said on Monday that it may
seek a Chinese investor to join a consortium of buyers, which also
includes BlackRock subsidiary Global Infrastructure Partners and
Terminal Investment Limited, a subsidiary of the Mediterranean
Shipping Company.
The initial deal, valued at nearly $23 billion, including $5 billion
in debt, would have given the consortium control over 43 ports in 23
countries, including the two at the Panama Canal.
Panama Ports Company said Friday it would communicate with the
Panamanian government “at the appropriate time,” affirming that it
believes engaging with the government “is vital to discuss the way
forward for” the company.
Panama's government maintains it has full control over the canal and
that the operation of the ports by Hutchison does not mean Chinese
control of it.
___
Associated Press journalist Alma Solís in Panama City contributed to
this report.
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