Panama Canal Ports Seized by Authorities in Move Against Hong Kong Conglomerate

Panama Seizes Control of Two Ports on Panama Canal

The Panamanian government has taken control of two ports on either end of the Panama Canal from Hong Kong conglomerate CK Hutchison. According to a statement released by the company, the Panamanian government made direct physical entry into the terminals at Balboa and Cristobal and assumed administrative and operational control over the two ports.

The takeover is attributed to a recent ruling by the country’s Supreme Court, which declared the concession held by CK Hutchison to operate the ports as “unconstitutional”. The company had renewed its concession in 2021 for another 25 years.

A government decree authorizes the Panama Maritime Authority to occupy the ports for reasons of urgent social interest and grants it the right to take over port property, including computer systems and cranes.

The Panamanian government has authorized the maritime authority to assume control of the ports following a Supreme Court ruling last month. The Chinese government’s Hong Kong and Macao Affairs Office described the ruling as “absurd” and “shameful”, while warning that Panama would face economic consequences.

Panama’s President Jose Raul Mulino rejected China’s threat against his country, stating that he “strongly” rejects any interference in his country’s affairs. The Panamanian government has emphasized its commitment to upholding the rule of law and respecting the decisions of the judiciary.

Source: Al Jazeera