CKH Holdings Issues Statement on Panama Port Dispute

CKH Holdings announced on February 12 that it has notified the Republic of Panama under an investment protection treaty regarding the dispute. The move aims to protect CKH Holdings' rights and interests and invites the Panamanian government to engage in consultations. The company is actively seeking solutions concerning actions taken by Panama that affect CKH Holdings and its subsidiary, Panama Ports Company. Panama Ports Company is indirectly held by CKH Holdings.

CKH Holdings stated that although a formal ruling has not yet been issued or taken effect, the Panamanian government has progressively taken steps to force Panama Ports Company to exit its port operations and implement a forced takeover of port transition measures, without clearly explaining its operational plans.

The company indicated it will continue consulting legal advisors and exploring all available avenues, including pursuing further domestic and international legal proceedings against Panama, its agents, and any third parties involved in the matter.

Despite these developments, CKH Holdings emphasized its commitment to ensuring that Panama Ports Company takes all reasonable and feasible measures to protect employees involved in operations, avoid disruptions to port activities, safeguard the interests of clients and suppliers, and maintain vessel and cargo flow through the Panama Canal—subject to approval from Panama’s Supreme Court and government.

CKH Holdings noted that the Panamanian government has so far failed to provide any guarantees or clear explanations regarding the operations of Panama Ports Company at the Balboa and Cristóbal ports. It continues to force a shutdown or takeover of operations, causing further disruption and damage.

If the concession is terminated after the ruling is formally issued, Panama Ports Company would immediately lose the ability to operate the container terminals at Balboa and Cristóbal ports. At this stage, the continuation of operations at both ports depends entirely on actions by Panama’s Supreme Court and government—actions beyond the control of CKH Holdings, Hutchison Ports, and Panama Ports Company.