Press Room

Panama, April 9th, 2025

Panama Ports Company, S.A. (“PPC”), operator of the port terminals of Balboa and Cristobal pursuant the concession contract approved by Law 5 of January 16, 1997, and its respective addenda, hereby responds to the recent statements regarding our company and concession:

· In 2005, PPC and the State voluntarily entered into an addendum to the concession contract, which was in accordance with all applicable legal requirements and approved by Law 55 of 2005. Under this addendum, PPC committed to invest more than $1,000 million balboas and to make an additional payment of $102 million balboas for the infrastructures it had inherited when it assumed the concession of the ports of Balboa and Cristóbal in 1997. This agreement reflected a strong commitment from the company and allowed all port operators in Panama to compete on a level playing field, as they do today.

· PPC has made significant investments that exceed $1,695 million balboas, surpassing not only the $50 million investment required under the original concession contract, but also the $1,000 million agreed under the addendum, as confirmed by the Comptroller General of the Republic in 2020 after a thorough audit process that lasted approximately 4 months.

· Therefore, any statement regarding what PPC should have paid under the concession contract entered into in 1997 must take into account the respective addenda, validly executed and approved by law. To express the opposite, as it unfortunately has been the case, not only distorts the reality of the existing legal relationship between PPC and the State under the concession contract and its addenda, but also contradicts the State’s own acts over the years. To maintain, therefore, that PPC has failed to pay approximately $1,200 million balboas to the Panamanian State, is absolutely contrary to reality.

· PPC is the only port company in Panama in which the State is a shareholder, with a 10% stake. Over the last 28 years, PPC has paid the Panamanian State the sum of $126 million balboas in dividends. Consequently, the State receives these dividend payments only from PPC and not from the other port operators.

· All the tax exemptions granted to PPC under the concession contract, which was approved by Law 5 of January 16, 1997 and its respective addenda, are precisely the same tax exemptions granted to all other port operators in Panama.

· The Office of the Comptroller General of the Republic, in its 2020 audit report, concluded that PPC is in substantial compliance with the clauses and obligations of the concession contract. Also, the Panama Maritime Authority certified in 2021 that PPC is in compliance with its obligations under the concession contract. Additionally, the PPC extension of the concession contract is valid, in force, and compliant with all legal requirements.

· During the term of the concession, PPC has paid the State $668 million of balboas, far exceeding the contributions of any other port operator in Panama.

· According to the Comptroller General of the Republic, PPC has contributed an amount of more than $5,900 million balboas to the national economy, through added value, indirect effects, payments to the State and investments made.

· The contracting of service providers has represented significant savings to PPC during the last 10 years.

· PPC has complied with the payments for container movement that the Panama Maritime Authority has required, at the same rate applicable to all port operators. At no time has PPC failed to comply with the payments corresponding to the rates applicable to port operators in Panama for the movement of containers.

We firmly believe that respect for legal certainty gives companies and investors the certainty that Panama is a safe country in which to invest. 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. Our track record of more than 28 years is proof of the positive impact we have generated, by building world-class ports, creating more than 25,000 direct and indirect jobs and contributing billions of balboas to the Panamanian economy. 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.

Panama Ports Company, S.A.

CLARIFICATION TO THE PUBLIC

In the last 3 years, Hutchison Ports PPC (Panama Ports Company, S.A.) has made payments to the Panamanian State amounting to $59 million which includes dividends in advance, totaling $658 million during the concession period.

Hutchison Ports PPC reiterates that in the year 2021, it paid $165 million in dividends and extraordinary contributions, including $35 million advanced dividends at the request of the Panamanian State, equivalent to 5 years of dividends, to address the financial crisis.

It should be noted that the company has paid a sum of $38 million over the past 3 years for container movement fees, which has been periodically paid to the Panamanian State by checks as established by the contract-law. Currently, Hutchison Ports PPC is the only port operator in the country where the state is a shareholder,
receiving payments for container movements and dividends.

The total amount paid to the State during the concession comes to $658 million, far exceeding the contributions of any other port company in Panama.

Hutchison Ports PPC has a workforce composed of 99.9% Panamanian personnel and investments in infrastructure and equipment amounting to $1.695 billion. This has made the Balboa and Cristobal port terminals among the most competitive and innovative in the region, attracting new shipping lines and larger cargo volumes to the country, which has generated thousands of new direct and indirect jobs for Panamanians and increased the concessionaire’s contributions to the national economy.

Hutchison Ports PPC (Panama Ports Company, S.A.)
Committed to Transparency and National Development

At Hutchison Ports PPC, we have maintained and will continue to maintain a transparent and collaborative relationship with Panamanian authorities. We remain steadfast in our commitment to comply with all laws and regulations, fully exercising our contractual responsibilities.

Our financial results, audited by an independent external auditor, have been shared annually with our partner, the Panamanian State, ensuring trust and clarity in our management. Likewise, we submit monthly reports to the Ministry of Economy and Finance and other government entities.

It is noteworthy that we were audited in 2020 – 2021 by the General Comptroller’s Office of the Republic and the Panama Maritime Authority, both of which demonstrated full compliance with our contractual obligations. Furthermore, we wish to inform the public that the General Comptroller’s Office of the Republic of Panama is currently conducting a new audit at our facilities, with which we are fully cooperating and maintaining due transparency.

Since our arrival, we have contributed over B/.5.9 billion balboas to the national economy, including added value, indirect effects, dividends, and payments to the State. This contribution has generated thousands of direct and indirect jobs, benefiting the country’s economy.

We reaffirm our ongoing commitment to excellence and ethics in each of our operations.

This commitment is fundamental and is reflected in our significant investments in the ports of Balboa and Cristóbal, where we have exceeded expectations in continuous infrastructure improvements, contributing to the country’s economic and social development.