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Connor Mycroft

A subsidiary of Hong Kong conglomerate CK Hutchison Holdings has accused Panama of missing a deadline for international arbitration initiated by the company, as it confirmed its offices had earlier been raided by alleged “armed security forces”.
Panama Ports Company (PPC) on Tuesday also accused authorities of silencing the country’s press and disregarding the rule of law, as it continued to paint the Central American nation as a risk to foreign investors following the seizure of its two terminals.
The company, a subsidiary of the conglomerate owned by Hong Kong tycoon Li Ka-shing’s family, is seeking US$2 billion in damages over what it described as the “illegal takeover” of its terminals at the Balboa and Cristobal ports in February.
In a statement, PPC said that Panama had failed to file a response to the company’s request for arbitration by a deadline last Friday, which had been set by the International Chamber of Commerce’s Court of Arbitration.
PPC claimed the government had said it was “not prepared” and would not be able to provide a response in time because it had not hired any lawyers, “was not familiar with the dispute” and needed time to develop a plan.
It also accused Panamanian authorities of failing to follow up on attempts by the company and its investors to find a solution to the matter.
“A state that respects foreign investors does not disregard consultations and international dispute procedures,” it said.
Panamanian authorities wrested control of the Balboa and Cristobal ports in February following a ruling by the country’s top court that declared the law approving the concession held by PPC unconstitutional.
PPC has operated the facilities since 1997 under a 25-year concession, renewed in 2021.
Days after the port takeover, Panamanian authorities also reportedly raided the company’s office, seizing boxes of documents.
PPC confirmed on Tuesday that authorities had raided what it described as a “private document storage facility,” alleging that “armed security forces” had appeared unannounced and taken corporate files.

The company also suggested that the government had “signalled to the domestic press to muffle” communications by the company, though it did not provide evidence for its claim.
“Panama has continued to disregard the rule of law,” the company said. “A state that respects foreign investors does not improperly seize their documents and trample due process.”
The canal, which carries about 5 per cent of global maritime trade, became a geopolitical flashpoint after United States President Donald Trump promised he would “take back” control of the waterway, which he accused of being under Beijing’s influence.
The port dispute also intersected with a separate attempt by CK Hutchison to sell more than 40 ports worldwide in a multibillion-dollar deal with a consortium led by US asset manager BlackRock and MSC.
Chinese regulators signalled that they would scrutinise the transaction, and reports indicated Beijing sought a greater role for state-owned shipping giant Cosco in any arrangement involving the Panama terminals.
Without providing a reason, Cosco announced last week that it would suspend its operations at the Balboa port, prompting Panamanian authorities to publicly urge the shipping giant to reconsider its decision.


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CK Hutchison subsidiary slams Panama for missing arbitration deadline

Balboa port was seized by Panamanian authorities in February. Photo: AP

The administrative entrance to the port of Balboa in Panama City, photographed in February this year. Photo: AFP

CK Hutchison subsidiary seeks US$2 billion for Panama’s takeover of canal ports

The Port of Balboa. Photo: AFP

CK Hutchison issued its own supplement, alleging that Panamanian authorities had failed to inform it about the takeover of the ports. Photo: Sam Tsang

Panama raids CK Hutchison subsidiary office, days after taking over canal ports

Panamanian police search a Panama Ports Company office. Photo Reuters

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Panama Ports Company also confirms offices were raided by alleged ‘armed security forces’ and accuses authorities of disregarding rule of law


Panama Ports Company also confirms offices were raided by alleged ‘armed security forces’ and accuses authorities of disregarding rule of law.


CK Hutchison subsidiary slams Panama for missing arbitration deadline

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Panama Ports Company also confirms offices were raided by alleged ‘armed security forces’ and accuses authorities of disregarding rule of law

Panama Ports Company also confirms offices were raided by alleged ‘armed security forces’ and accuses authorities of disregarding rule of law