Panama government forcibly enters and takes over the port. Cheung Kong Holdings, owned by Li Ka-shing, responds: The related actions are illegal and pose serious risks.

On February 24, Cheung Kong Holdings, a subsidiary of Li Ka-shing, announced on its official website that Yangtze River and Hutchison oppose the Panamanian government’s forced takeover of the assets, employees, and operations of the Panama Port Company. The Panama ports have been compelled to cease container operations at the Balboa and Cristóbal terminals.

The announcement states that on February 24, 2026, Cheung Kong Industrial Holdings Limited (“Cheung Kong”) learned that on February 23, 2026, Panama time, the Republic of Panama (“Panama Government”) forcibly entered the two container terminals operated by Cheung Kong’s subsidiary, Panama Port Company, at Balboa and Cristóbal, and took over the administrative and operational control of these terminals. At the same time, representatives of Panama Port Company were barred from entering the terminals.

This forced takeover of the two container terminals is the culmination of a series of actions by the Panama Government over the past year against Panama Port Company and its concession agreement. On the morning of February 23, the Panama Gazette published, in quick succession, a ruling by the Supreme Court of Panama dated January 16, 2026, regarding Law No. 5 enacted on January 16, 1997, published on January 29, 2026 (“the Ruling”), as well as an administrative decree issued by the President of Panama. The decree requires the country, with the participation of all relevant government agencies, to “occupy” all movable property of Panama Port Company. Meanwhile, government representatives arrived at the two container terminals without invitation, informing Panama Port Company representatives that the concession rights no longer exist, that Panama Port Company must cease operations, and instructing employees to be relocated from Panama Port Company. Employees were told they could not communicate with the company and must comply with government directives, or face criminal prosecution. Currently, Panama Government has control of both terminals.

Based on the documents published in the Gazette, official statements, and the actions taken by the Panama Government to forcibly take over the terminals, Cheung Kong understands that the concession rights granted to Panama Port Company to operate the Balboa and Cristóbal terminals were forcibly terminated as of February 23, 2026.

These actions and directives by the Panama Government have rendered Panama Port Company unable to continue operations. Therefore, Panama Port Company was forced to cease all activities at either of the two terminals from February 23, 2026.

Cheung Kong reiterates that the Ruling, the administrative decree issued by the Panama President, the revocation of Panama Port Company’s concession rights, and the forced takeover of the terminals are all unlawful. These actions also pose serious risks to the operation, health, and safety of the Balboa and Cristóbal terminals. Panama Government did not notify Panama Port Company of these actions nor did it consult with the company. Panama Government must bear all damages and losses caused by its forcible expropriation.

Cheung Kong and Panama Port Company will continue to seek legal advice regarding the Ruling, the forced takeover of the ports, and the forced termination of Panama Port Company’s concession rights. They will explore all possible avenues, including pursuing further legal proceedings domestically and internationally against the Republic of Panama, its agents, and third parties involved in collusion, and reserve all rights to hold relevant parties accountable.

On the morning of the 24th, CK Hutchison’s stock price plummeted, closing down nearly 2% at midday, with a total market capitalization of HKD 241.5 billion.

Previously, according to a report by France Presse cited by Reference News on February 19, Cheung Kong stated that it had requested negotiations with the Panama Government on February 19 regarding the continued operation of ports at both ends of the Panama Canal.

Since 1997, Cheung Kong has managed the ports of Cristóbal on the Atlantic side and Balboa on the Pacific side of the Panama Canal. In 2021, this concession was extended for another 25 years.

In January this year, the Supreme Court of Panama ruled that Cheung Kong’s holding of the port operation rights at both ends of the Panama Canal was unconstitutional. Subsequently, Panama announced that the Danish shipping giant Maersk would take over the operation of these ports. Cheung Kong stated it would take legal action in response.

On February 12, Cheung Kong announced that it had notified the Panama Republic of the dispute under the Investment Protection Treaty to safeguard its rights, and invited Panama to engage in consultations. It continues to actively seek solutions regarding the actions taken by the Panama Government that affected Cheung Kong and Panama Port Company. Panama Port Company is an indirect subsidiary of Cheung Kong.

On February 4, Chinese Foreign Ministry spokesperson Lin Jian stated during a press conference that China has responded to the Panama Supreme Court’s ruling on the ports, and the Hong Kong SAR government has also issued a statement. China will resolutely defend the lawful rights and interests of Chinese enterprises.

(Source: Daily Economic News)