CK Hutchison defends Panama ports concession, breaking silence on controversy

SCMP | April 9, 2025, 8:52 a.m. | Original

In the past month, Beijing has piled pressure on CK Hutchison to cancel its ports deal. Photo: Reuters

Li Ka-shing’s CK Hutchison Holdings has defended the contract that has allowed it to run two ports at the Panama Canal since 1997, saying the concession was “validly executed and approved by law” and denying it failed to pay US$1.2 billion to the country, as had been claimed in a legal challenge by two lawyers.
The comments on Wednesday marked the first time the conglomerate had weighed in since revealing a deal to sell its 43 overseas ports. Its subsidiary, Panama Ports Company (PPC), issued a response to the recent legal challenge filed in Panama and denied a number of accusations.

The deal, announced on March 4, includes the company’s Balboa and Cristobal ports at the vital waterway.

A key argument in the PPC’s defence was that it had made more than US$1.695 billion in investments in the two ports, exceeding the required US$50 million in the original concession contract, and another US$1 billion agreed in an addendum the conglomerate and the Panamanian state had voluntarily entered into in 2005.

“We firmly believe that respect for legal certainty gives companies and investors the certainty that Panama is a safe country in which to invest,” the PPC said.

“Our philosophy of ‘Ports made by Panamanians’ reflects our continuous commitment to the country and its people, being an essential engine within the dynamic national economy and the maritime port sector.

“[The] PPC continues to call for respectful coordination and consultation to protect the concession that has provided high-quality services for the benefit of Panama and the world.”

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