CK Hutchison to engage with Panama government, stakeholders over ports' future

Panama Ports Company, a subsidiary of CK Hutchison Holdings (0001), emphasized the importance of dialogue following comments by Panama President José Raúl Mulino regarding a possible public-private partnership takeover of the ports.

In a Friday statement, PPC said it would communicate with relevant parties including the Panamanian government, stating that engagement with authorities is vital to determine the company's future path. The company expressed its desire to work with the government "for a better future for local people."

PPC affirmed its firm belief that "respect for legal protection and the rule of law" is crucial to demonstrate to global businesses and investors that Panama remains a safe investment destination.

CK Hutchison holds a 90 percent stake in PPC, which secured a 25-year concession renewed in 2021 to operate the strategic Balboa and Cristobal ports at both ends of the Panama Canal.

The contract has been contentious since former U.S. President Donald Trump threatened earlier this year to "take over the waterway," citing concerns about China's growing influence in Panama's maritime sector. CK Hutchison has been seeking to divest its stake in the Panamanian operation as part of a larger global restructuring.

On Thursday, President Mulino stated he doesn't foresee the continuation of PPC's contract under current terms, proposing instead to manage "the ports and the mine through partnerships with the state." While acknowledging that the final decision rests with the courts, Mulino suggested the possibility of state involvement in port operations currently managed by CK Hutchison.

Panama's Supreme Court is currently reviewing two legal challenges to the contract: one seeking to have it declared unconstitutional, and another arguing for its nullification on grounds of harming national interests.

Staff reporter and Reuters