Press Room

CK HUTCHISON UPDATES STATUS OF DISPUTES RELATING
TO PPC’S TERMINAL OPERATIONS IN THE REPUBLIC OF PANAMA

• Continued operation of Balboa and Cristobal terminals depends solely on actions of the Panama Supreme Court and the Panamanian State
• Publication of a Panama Supreme Court ruling for termination of PPC’s Panama concession that renders PPC operations at Balboa and Cristobal illegal makes any continued operation of the terminals impossible
• CKHH has notified A.P. Moller-Maersk A/S that any assumption by APM Terminals of operations of the two terminals without the agreement of CKHH will cause damages to CKHH, HPH and PPC, and will result in recourse against APMT
• Third parties warned against colluding in any unlawful action relating to the operation of the two terminals

Hong Kong SAR, 12 February 2026: CK Hutchison Holdings Limited (“CKHH”) announces that it has notified the Republic of Panama of a dispute pursuant to an investment protection treaty in order to protect its rights and interests, and invited consultations in an ongoing effort to resolve measures taken by the Panamanian State that have impacted CKHH and Panama Ports Company S.A. (“PPC”), an indirect subsidiary of CKHH.

CKHH took this step based on cumulative measures by the Republic of Panama, including the announcement by the Judicial Branch on 29 January 2026 regarding the Supreme Court of Justice of Panama’s determination that Law No. 5 of January 16, 1997 (“Law No. 5”) is unconstitutional.

Law No. 5 has been the basis for the concession contract and operations of PPC at the ports of Balboa and Cristóbal, Panama for nearly three decades. CKHH considers a determination purporting that Law No. 5 is unconstitutional to be unlawful. Although the determination is yet to be published or come into force, the Panamanian State has advanced steps toward a forced exit of PPC and transition of the port sector, with no clarity as to operational plans.

In addition to CKHH’s treaty notification, and the arbitration commenced by PPC on 3 February 2026 pursuant to the applicable concession contract previously announced by CKHH in its voluntary announcement of 4 February 2026, CKHH will continue to consult with its legal counsel regarding all available recourse including additional national and international legal proceedings against the Republic of Panama and its agents and third parties colluding with them in this matter.

In this context, CKHH notes:

• an announcement of the Panama Maritime Authority of 30 January 2026 that it will rely on APM Terminals (“APMT”), an affiliate of A.P. Moller – Maersk A/S, as a temporary administrator of the PPC’s terminals at the ports of Balboa and Cristobal as part of a transition plan for the administration of the two ports; and
• APMT’s own announcement on 30 January 2026 of its willingness to assume the temporary operation of the two ports.

On 10 February 2026, Hutchison Port Holdings Limited (“HPH”) notified A.P. Moller – Maersk A/S that any steps by APMT or any of its affiliates to assume the administration or operation of PPC’s ports at Balboa or Cristobal in any capacity for any period of time without the agreement of CKHH will cause damages to CKHH, HPH and PPC and result in legal recourse against APMT and/or its affiliates involved.

Notwithstanding these developments, CKHH remains fully committed to ensuring that PPC will take all steps reasonably available to protect the employees who participate in its operations, to avoid disruptions to port operations, as well as customers and suppliers, and to facilitate the flow of vessels and cargo transiting the Panama Canal, as it always has, provided that the actions of the Panama Supreme Court and the Panamanian State permit.

The Panamanian State has given PPC no assurances or clarity regarding PPC’s operations at the ports of Balboa and Cristobal and continues to push toward a forced stoppage or takeover of PPC’s operations, causing further disruption and damage. If the publication of the Ruling results in the termination of PPC’s concession, the immediate result would be to render PPC’s operation of its terminals at the ports of Balboa and Cristobal impossible. Accordingly, at this stage, continued operation of the ports depends solely on actions of the Panama Supreme Court and the Panamanian State, which actions are of course wholly outside the control of CKHH, HPH and PPC.

Ends

Panama, 3 February 2026

Panama Ports Company S.A. (PPC) advises that it commenced arbitration against the Republic of Panama on 3 February 2026 pursuant to the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce. 

The commencement of arbitration by PPC follows a campaign by the Panamanian State specifically targeting PPC and its concession contract spanning a year that has been marked by a range of abrupt actions by the Panamanian State culminating in grave and imminent further damage to PPC, while similar port sector contracts have not been targeted.

The arbitration also follows extensive efforts by PPC spanning a year to consult and avoid disputes.  While diligently carrying out port operations and cooperating with the Panamanian State in many ways, PPC also has consistently advised through diverse communications its concerns regarding the State campaign as it has unfolded and sought clarity and consultations to avoid the necessity of arbitration, to no avail.  Instead, over the past year, since the start of the present year, and even through recent days, the Panamanian State routinely disregarded communications, efforts to consult, and requests for clarity.

The arbitration is based on the concession contract and legal framework that have been enshrined over almost three decades as a “contract-law,” providing legal certainty and long-term respect for the applicable legal and contractual framework.   The Republic of Panama has breached the applicable Contract and law.  PPC seeks extensive damages based on an assessment of relevant financial data, subject to prompt resolution, and such other requests for relief as may prove necessary.  PPC and its investors continue to permanently reserve all rights.

As a backdrop to the arbitration, and in addition to the other aspects of its campaign, over the past year, the Panamanian State choose to reverse its longstanding positions regarding the legal and contractual framework, breached its obligations under the contract, and commenced, pursued, and/or supported legal proceedings aimed at destroying the concession contract, which was the result of a transparent international bidding process. 

As PPC has advised, the Judicial Branch of the Republic of Panama issued an irregular press statement after the closure of the Supreme Court of Justice on the night of 29 January 2026, regarding a ruling to declare Law No. 5 of 16 January 1997 unconstitutional, among other relevant laws and instruments.  Such an outcome is diametrically opposed to previous decisions issued by the Supreme Court regarding contracts similar to the PPC contract.  The court ruling has not yet been published or become effective.   

Since early on the morning after the judicial press release, the Panamanian State declared and broadly deployed steps to take over the operations of PPC.  With various references to the unpublished court ruling, the steps taken by the State have included unexpected site visits and instructions that PPC, a private company, provide unrestricted access to physical, commercial, and intellectual property and information, as well as to employees, on the basis that the State is “systematizing and executing” a port transition “plan” through “coordinated actions” of State authorities. 

PPC has continued to manage port operations and respectfully interact with State representatives, including requesting access to the referenced plan and opportunities to consult and coordinate.  As PPC has highlighted, PPC and its investor have invested extensively in infrastructure, technology, and human development, an amount  multiple times the investment made by any other port operator in the country. These investments have generated thousands of direct and indirect jobs and have been determinant in establishing Panama as a globally recognized port and logistics hub, attracting the world’s leading shipping lines and generating positive impact for the entire nation. Despite recent developments, PPC strongly reiterates its invitation to the Panamanian State for clarity and consultations to resolve this matter.

Panama Ports Company, S.A

Panama, 29 January 2026

Panama Ports Company S.A. (PPC) takes note of the statement issued this evening by the Judicial Branch of the Republic of Panama stating that the Supreme Court of Justice has decided to declare Law No. 5 of 16 January 1997 unconstitutional, among other relevant laws. While PPC has not yet been notified of such decision, the decision is inconsistent with the relevant legal framework and the law that approved the contract which has been the basis for PPC’s operations at the ports of Balboa and Cristóbal for nearly three decades, based on the referenced statement and assessment by counsel of the referenced proceedings.

This is the latest development in a campaign by the Panamanian State impacting PPC and its investor over more than a year, including a range of surprise actions targeting the Concession and PPC.

Over 28 years of operation, PPC and its investor have invested more than USD 1.8 billion in infrastructure, technology, and human development—an amount multiple times the investment made by any other port operator in the country. These investments have generated thousands of direct and indirect jobs and have been determinant in establishing Panama as a globally recognized port and logistics hub, attracting the world’s leading shipping lines and generating positive impact for the entire nation.

The PPC concession contract was the result of a transparent international bidding process. From that time, PPC has complied with its contractual and legal obligations, including audits conducted by the State, always acting with complete transparency and a full willingness to cooperate.

The new ruling, based on available information, lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country. The ruling is diametrically opposed to previous decisions issued by the Supreme Court regarding contracts similar to the PPC contract.

The campaign by the Panamanian State against its own legal and contractual framework, and a diligent concessionaire and investor, continue to undermine the reputation of Panama as a reliable jurisdiction and its position as a globally competitive logistics center. Institutional and legal stability and respect for contracts are fundamental pillars for sustainable development and the rule of law.

PPC reiterates its commitment to Panama, its workers, the communities of Balboa and Colón, and all stakeholders, as reflected in its ongoing cooperation with the State despite the developments of the past year. Due to the campaign affecting PPC and its investors, the company and its investors continue to permanently reserve all rights including recourse to national and international legal proceedings.

PPC and its investors have always sought cooperation with the Panamanian State and reiterate their call for respectful coordination and consultation to avoid disruption and protect the concession that has provided high-quality services for the benefit of Panama and the world.

Panama Ports Company, S.A.