Hong Kong leader says concerns over Panama ports deal warrant ‘attention’


By AFP
March 18, 2025


The business empire of Hong Kong's richest man, Li Ka-shing, sold its Panama Canal port operations to a US-led consortium following pressure from US President Donald Trump - Copyright AFP/File MARTIN BERNETTI

Hong Kong leader John Lee on Tuesday said criticism of city conglomerate CK Hutchison’s sale of its Panama Canal ports deserved “serious attention”, after Beijing authorities repeatedly slammed the deal.

The business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its port operations — including those in the canal — to a US-led consortium this month following pressure from US President Donald Trump.

But Beijing has upped pressure on the firm since, with two Chinese government offices managing Hong Kong affairs republishing newspaper articles last week blasting the transaction and questioning whether CK Hutchison sided with the United States over China.

“There have been extensive discussions in society about the issue and this reflects society’s concern over the matter,” Lee, the chief executive of the largely autonomous Chinese city, told reporters.

“These concerns deserve serious attention.”

Bloomberg News reported on Tuesday, citing unnamed sources, that senior Chinese leaders have ordered several government agencies — including the State Administration for Market Regulation — to scrutinise the deal.

This examination by Beijing does not necessarily result in follow-up action, the sources told Bloomberg, asking not to be identified to discuss private deliberations.

Shares of CK Hutchison in Hong Kong fell nearly four percent on Tuesday morning.

For months, Trump has complained that China controls shipping in the Panama Canal, which was built by the United States more than a century ago to link the Pacific and Atlantic oceans.

The US president repeatedly threatened to “take back” the canal, which was handed over to Panama in 1999.


– ‘Bullying tactics’ –

Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one on the Cristobal, Atlantic, side and the other on the Balboa, Pacific, side — via a government concession since 1997.

CK Hutchison, one of Hong Kong’s largest conglomerates, said the deal was unrelated to recent political news.

Lee on Tuesday urged foreign governments to “provide a fair and just environment” for Hong Kong enterprises, without calling out the United States by name.

“We oppose the abusive use of coercion, of bullying tactics in international economic and trade relations,” he said.

Lee said any transaction must comply with legal and regulatory requirements, adding that Hong Kong would “handle it in accordance with the law and regulations”.

The Hong Kong and Macao Work Office — an office in Beijing overseeing Hong Kong affairs — republished a newspaper article last Thursday asking CK Hutchison “which side it stands on”.

Two days later, it ran another piece critical of the deal, which was later republished by the Liaison Office, the top Beijing authority based in Hong Kong.

AFP has contacted the conglomerate for comment.

Outspoken Hong Kong ex-leader CY Leung added to the chorus of criticism, saying “some Hong Kong businesspeople mistakenly believe that ‘businesspeople have no homeland'”.

“American businesspeople can and will do only things aligned with US interests… the same applies to China,” Leung wrote on Facebook on Monday.

Hong Kong’s Hutchison under fire again for Panama ports deal


By AFP
March 15, 2025


View of the Port of Balboa, which was managed by CK Hutchison Holdings - Copyright PERUVIAN NAVY/AFP Handout

Hong Kong conglomerate CK Hutchison is under renewed pressure from Beijing after selling its Panama Canal ports, with Chinese authorities publishing newspaper criticism of the deal for the second time in three days.

Last week the business empire of Hong Kong’s richest man, Li Ka-shing, sold most of its ports operations — including those in the canal — to a US-led consortium following pressure from US President Donald Trump.

In a statement, CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock for $19 billion in cash.

On Saturday, the Hong Kong and Macao Work Office — the Beijing-based authority in charge of Hong Kong affairs — reposted a newspaper editorial titled “Great entrepreneurs have always been outstanding patriots”.

The article, originally published by the Beijing-backed newspaper Ta Kung Pao in Hong Kong, said many Chinese people have questioned “how so many important ports can be so easily handed over to ill-meaning American forces”.

“If (entrepreneurs) fail to see the true nature of American politicians… and choose to dance with them, perhaps they can do a mega-deal and get rich for a while, but in the end they have no future and will be scorned by history,” the piece read.

The same article was also republished in full on Saturday by the Liaison Office, the top Beijing authority based in Hong Kong.



– ‘Choose a side’ –



CK Hutchison stocks in Hong Kong plunged more than six percent on Friday after Chinese authorities republished an op-ed telling the company to choose “which side it stands on”.

That older article appeared in the commentary section of Thursday’s Ta Kung Pao, which is owned by a subsidiary of the Liaison Office.

In contrast, Saturday’s editorial was excerpted on the front page and its full text ran on page three.

The paper’s website published three more opinion pieces by outside contributors on Sunday morning, all critical of the deal.

CK Hutchison has not responded to AFP’s request for comment.

For months, Trump has complained that China controls the Panama Canal and that American vessels were overcharged for using it, even refusing to rule out a military invasion of Panama to “take back” the vital waterway.

Before the sale, CK Hutchison’s subsidiary in Panama had managed two of the five ports at the canal — one at Cristobal and the other at Balboa — via a government concession since 1997.

The ports transaction was “purely commercial… and wholly unrelated to recent political news”, co-managing director Frank Sixt said when the deal was announced.

China’s foreign ministry spokesperson Lin Jian declined to comment on the deal earlier this month.

The Hong Kong government has said it “never interfered in the commercial operation of Hong Kong companies”.

CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

 

Report: Aponte Family May Buy Most of CK Hutchison's Terminals for $23B

CK Hutchison's container terminal in Balboa, Panama

Published Apr 14, 2025 2:10 PM by The Maritime Executive

 

The Aponte family-owned ports operator Terminal Investment Limited (TIL) is in the running to take over the vast majority of CK Hutchison's global container terminal portfolio after a deal led by BlackRock hit snags in Beijing. According to the South China Morning Post and Bloomberg, the restructured proposal would see BlackRock keep a 51 percent stake in Hutchison's two terminals in Panama - the sites of greatest interest to the U.S. government - while TIL would take over all 41 other sites around the world. 

If completed, the transaction would cost TIL about $23 billion, including $19 billion in cash, a source close to the agreement told SCMP on Monday.

The accuracy of the reports could not be verified, and may reflect a negotiation in flux. In an interview with Italy's ShipNews conducted Friday or Saturday, while MSC World America was at Ocean Cay, Aponte family top executive Diego Aponte laid out a much different deal: a three-way global split that would see ownership shared 70% for MSC, 20% for Blackrock, and 10% for CK Hutchison. It was unclear whether this version was still current as of Monday, as it contradicts other reporting. 

Whichever structure prevails, it would be among the biggest business deals in shipping in decades, so long as it can pass muster with authorities in China.

State-linked media outlets in Hong Kong have publicly slammed CK Hutchison for its initial attempt to sell the full portfolio to BlackRock, asserting that a mega-deal with an American company would be unpatriotic and would undermine Chinese security interests. According to Bloomberg, Beijing has retaliated by threatening to withhold government business and domestic regulatory approvals from CH Hutchison's family owners, who also have extensive business interests in mainland China.  

BlackRock's bid has heavy diplomatic support from the White House, and President Donald Trump has repeatedly threatened to "take back" the entire Panama Canal in order to counter alleged Chinese influence on the waterway. Following these maximalist threats, U.S. Secretary of Defense Pete Hegseth recently suggested that the U.S. has secured a more modest concession from Panama: local cooperation on reducing China's footprint.

Despite apparent progress on the diplomatic front, Blackrock's attempt to buy the Panamanian terminals has run into a local hurdle. Panama's comptroller general alleges that CK Hutchison's most recent lease renewal was never fully approved, and that the Panamanian government has been underpaid by hundreds of million dollars in fees. (CK Hutchison's Panama subsidiary denies any wrongdoing.) If substantiated, the investigation has the potential to slow down BlackRock's portion of the deal.

By splitting off the other 41 terminals in the Hutchison portfolio and selling them to TIL, the revised deal would allow Hutchison to complete the majority of its ports divestment without waiting for a Panamanian review - so long as Chinese authorities approve of TIL as a buyer. That might not happen, according to local experts. 

"Beijing doesn’t have to read the news before knowing who Hutchison is selling the assets to," Lau Siu-kai of the pro-government Chinese Association of Hong Kong and Macau Studies told SCMP. "Whether it is Italy or any other Western country taking control of the ports, Beijing still opposes the deal because these countries are vulnerable to pressure from the US." 

Speaking with ShipNews, Diego Aponte appeared confident that the transaction would eventually go through. "I am calm. There are discussions underway, but I believe that in a short time everything will be clarified with the various parties involved. Including the Chinese. To mutual satisfaction," he said. 

Hong Kong’s embattled CK Hutchison says profits down in 2024


By AFP
March 20, 2025


CK Hutchison this month offloaded its global ports business outside China -- including operations in the Panama canal -- to a group led by giant asset manager BlackRock for $19 billion in cash - Copyright AFP/File MARTIN BERNETTI

Holmes CHAN

Embattled Hong Kong conglomerate CK Hutchison Holdings, caught in a US-China spat over control of the Panama Canal, said on Thursday that profits fell 27 percent in 2024.

CK Hutchison this month offloaded its global ports business outside China — including operations in the canal — to a group led by giant asset manager BlackRock for $19 billion in cash.

The parties expect to sign a “definitive agreement” by April 2 concerning the Panama Ports Company, which has operated two of the five ports at the canal since 1997 via a government concession.

The deal came after weeks of pressure from US President Donald Trump, who refused to rule out a military invasion of Panama to “take back” the vital waterway from alleged Chinese control.

Thursday’s results announcement made no mention of the BlackRock deal.

“On the whole, the Group’s underlying operating results were relatively stable” last year despite a one-time issue related to its Vietnam telecommunications business, chairman Victor Li, son of billionaire founder Li Ka-shing, said in a filing with the Hong Kong Stock Exchange.

But CK Hutchison said its “ports and related services” division saw an 11 percent jump in revenue to $5.8 billion.

Earnings before interest, taxes, depreciation, and amortisation soared 19 percent year-on-year to $2.1 billion, the firm said.

“There may be headwinds with supply chain disruptions anticipated in the early part of the year due to shipping lines transitioning into their new alliances, as well as ongoing geopolitical risk impacting global trade,” Li said as part of the ports division’s 2025 outlook.

– Beijing scrutiny –



Shares in CK Hutchison jumped more than 20 percent in Hong Kong after the ports deal was first announced on March 4.

But Beijing made its displeasure known last week via two government offices overseeing Hong Kong affairs, which republished newspaper articles criticising the deal as “spineless” and “betraying and selling out all Chinese people”.

Hong Kong leader John Lee also said on Tuesday that concerns about the sale “deserve serious attention”, adding that the city will “handle it in accordance with the law and regulations”.

CK Hutchison cancelled its post-earnings press conference on Thursday and has not responded to multiple AFP enquiries.

Bloomberg News has reported citing unnamed sources that senior Chinese leaders have ordered government agencies including the State Administration for Market Regulation to scrutinise the deal.

The conglomerate is registered in the Cayman Islands and the assets being sold are all outside China.

Following years of diversification, operations in mainland China and Hong Kong made up just 12 percent of CK Hutchison revenue last year, according to Thursday’s results.

The conglomerate had previously claimed to have “the world’s leading port network”, which spans 53 ports in 24 countries.

But in terms of revenue, CK Hutchison’s ports division pales in comparison to its worldwide business interests in finance, retail, infrastructure and telecoms.

In Hong Kong, CK Hutchison is known for its founder, Li Ka-shing, the city’s wealthiest man and nicknamed “Superman” for his business savvy.

The 96-year-old enjoyed close ties with three generations of top Chinese leaders, but the bonhomie faded after Xi Jinping took power.

Over the past decade, Chinese state media has criticised Li for his apparent decision to divest from some Chinese markets and for supposedly showing sympathy to Hong Kong pro-democracy protesters in 2019.

CK Hutchison: the Hong Kong firm behind Panama port operators


By AFP
February 3, 2025


A ship is loaded with containers at Balboa, operated by Hutchison Ports, in Panama City - Copyright AFP/File Luis ACOSTA
Holmes CHAN

A sprawling business empire built by Hong Kong billionaire Li Ka-shing is caught in the crossfire as the extent of Chinese influence over the Panama Canal is debated.

US Secretary of State Marco Rubio said last week it was “unacceptable” for Hong Kong-based companies to control the canal’s entry and exit points, arguing they could shut down transit if Beijing ordered them to.

Panama has now announced an audit into the subsidiary of Li’s CK Hutchison Holdings, which manages two of the canal’s five ports.

Here’s what you need to know about the Panama port operator and its ties to China:

– Who runs the ports? –

Hutchison Ports PPC — which also uses the name Panama Ports Company SA — has managed the port of Cristobal on the canal’s Atlantic side and Balboa on the Pacific side since 1997 via a concession from the Panama government.

That arrangement was automatically renewed in 2021.

Hutchison Ports said last month that it is the “only port operator in the country where the state is a shareholder”, and that it had paid the Panama government $59 million in the past three years.

It said its workforce is almost entirely Panamanian.

Parent company CK Hutchison Holdings is one of Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

The company has a hand in running 53 ports in 24 nations, including in Britain, Spain and Australia.

– Hong Kong’s ‘Superman’ –

CK Hutchison was built from nothing by Li — now Hong Kong’s richest man, nicknamed “Superman” for his business acumen.

His company Cheung Kong — named after China’s Yangtze River — thrived in Hong Kong’s property market during the British colonial era and began expanding overseas in the 1980s.

In 2015, CK Hutchison was born out of a restructuring.

Three years later, Li stepped down as company chairman at age 89 and handed control to his eldest son Victor.

The firm and its subsidiaries operate a range of businesses, including ports, in mainland China.

Li was known to have close ties with top Chinese leaders before Xi Jinping came to power.

Victor Li is a long-time member of the Chinese People’s Political Consultative Conference, a top political advisory body.

– Exposure to China –

Rubio says the current arrangement is not in the national interests of the United States.

If Beijing ordered a shutdown of the canal, a Hong Kong firm would have no choice but to comply as “a company based in Hong Kong is the government of China”, Rubio said last week, without specifying CK Hutchison by name.

A former British colony, Hong Kong was handed over to China in 1997 under a “One Country, Two Systems” framework which promised a high degree of autonomy and a separate legal and financial system.

But Beijing has remoulded Hong Kong in its authoritarian image after the city saw huge and sometimes violent pro-democracy protests in 2019.

Critics say the city’s two subsequently imposed national security laws curtail rights and undermine the free and open business environment that made Hong Kong an international finance hub.

In 2020, Israel rejected an infrastructure bid from CK Hutchison after then US secretary of state Mike Pompeo warned about Chinese involvement.

– ‘Never interfered’ –

A Hong Kong government spokesperson told AFP that the city’s authorities have “never interfered in the commercial operation of Hong Kong companies”.

The financial hub has been a “staunch supporter of the multilateral trading system and opposes any country imposing measures or restrictions that undermine normal trade or business operations”, the spokesperson said.

CK Hutchison did not respond to questions about canal operations. Last month the company directed AFP to a statement by its Panama subsidiary.

 

Panama’s Comptroller Asks Court to Void Hutchison’s Terminal Concession

Hutchison's operation of the terminals in Panama is now being challenged by the country's Comptroller General (CK Hutchison file photo)

Published Jul 31, 2025 12:58 PM by The Maritime Executive

 

The struggle over the operations of the terminals at each terminus of the Panama Canal continues with Panama’s Comptroller General announcing his office has filed lawsuits seeking to void the 2021 contract extension with CK Hutchison. It is the latest twist in the political wrangling that has seen Donald Trump assert China controls the Panama Canal while Panama’s Government has defended its sovereignty. 

Anel Bolo Flores, Comptroller General of Panama, has spoken out against the contract extension granted by the prior government in 2021 to Panama Ports Company, which is 90 percent owned by CK Hutchison. The government of Panama has a 10 percent ownership stake in the company. In April, under political pressure from the United States, the Comptroller General reported that his office was starting an audit of the contract and the renewal process.

Speaking at a press briefing in Panama, Flores said on July 31, “The contract was bad, one-sided and abusive, against the interest of the country,” Bloomberg reports. Without releasing the details of his audit, Flores said the contract extension was “poorly negotiated.” He contends the audit found “many irregularities.”

CK Hutchison in April issued a detailed statement asserting that the contract is “valid, in force, and compliant with all legal requirements.” It highlighted that in 2020, the Office of the Comptroller General of the Republic concluded that the company was “in substantial compliance with the clauses and obligations of the concession contract,” which was also later certified in 2021by the Panama Maritime Authority.

The company has been in Panama since 1997, as the United States moved to complete the handover of the Canal under the 1977 treaty. Hutchison operates terminals in Balboa and Cristobal and in 2021 was awarded a 25-year extension of its concession in a no-bid process.

Flores has repeatedly spoken against the process conducted by the prior government and contends the renewal was “never legally authorized.” He cites tax breaks and amendments, which he says are costing Panama up to $1.3 billion in lost revenue.

The Comptroller General’s office said it is filing two legal cases with the country’s Supreme Court. One seeks to declare the extension unconstitutional, and the other seeks to void the 2021 agreement.

Also at issue is the proposed sale of the Panama Ports Company to an investment group led by BlackRock and MSC’s Terminal Investments Ltd. Trump hailed the deal as returning the Panama Canal to U.S. control, but the deal has encountered strong opposition from China, which says it is U.S. manipulation that would harm Chinese trade.

Flores commented as part of his briefing, saying, “They are talking about billion-dollar deals here, which do not include Panama, the true owner of the Panamanian ports," reports Reuters. "That is why we have taken the actions we are taking, because we are not satisfied."

The lockup agreement between Hutchison, BlackRock, and TiL expired on July 27, but Hutchison reported on Monday that talks were continuing. It said they were exploring inviting a Chinese investor to join the consortium, a step that is seen as face-saving for the Chinese government. Adding a further element to the negotiations, CMA CGM’s CFO told investors on Tuesday, the French company is looking at the deal and expressed interest in possibly acquiring some of the terminal assets controlled by CK Hutchison. 

Hutchison reported in March that it had reached two parallel tentative agreements with the BlackRock-TiL consortium. One was for the acquisition of the Panama company operating the Balboa and Cristobal terminals. The other deal is for the 43 ports operations worldwide outside China. 

Panama’s President Jose Raul Mulino told reporters during his weekly briefing on Thursday that maybe the solution would be a public-private partnership to run the terminals. He said the situation is now in the hands of the court, but that he does not think the Hutchison contract would continue or be amended. He has been adamant that the canal and its operations are Panama's and that he would ensure it remains a Panamanian asset. Earlier this year, he took steps to end some of China's involvement with Panama while rejecting Trump's claims of Chinese domination.

 

Report: COSCO Seeks Share of Hutchison Deal Addressing China’s Fears

COSCO which already has substantial port operations is negotiating for a port of the deal to acquire CK Hutchison's portfolio (COSCO Zeebrugge)

Published Jun 13, 2025 5:27 PM by The Maritime Executive

 

A new report is suggesting that China’s COSCO Shipping is negotiating for a role as an investor in the deal to acquire the terminal operations of CK Hutchison. Bloomberg first reported that a group of Chinese investors is in discussions with MSC’s Terminal Investments and BlackRock about participating in the $23 billion deal for the terminal operations in 41 ports around the world.

China has strongly objected to the deal and primarily the parallel portion that sells the operation of terminals at both ends of the Panama Canal. Billionaire Li Ka-shing who controls CK Hutchison has long been at odds with the communist government and with the announcement of the deal China said it was a betrayal of the nation. It sees the agreement to sell the operations in Panama to BlackRock as a threat to Chinese trade and being done to appease Donald Trump and his assertions that “China runs the Panama Canal.”

The two deals have also come under scrutiny from various parts of the shipping industry which cites MSC’s growing domination. Panama officials told the Financial Times that the concentration of terminal ownership could threaten the promised neutrality of Panama’s operations. Well-known industry analyst Drewry also highlights that TIL would become a dominant force in port operations. TIL says on its website that it operates more than 70 terminals worldwide in 31 countries and handles more than 65 million containers annually. MSC has also become the sole investor in the Port of Hamburg (Germany) with the city.

CK Hutchison announced at the beginning of March that it had entered into exclusive negotiations with the BlackRock investment group for the terminals in Panama as well as its portfolio of properties worldwide except for Hong Kong and the Chinese mainland. The outline of the deal called for the sale of 80 percent ownership of CK Hutchison’s portfolio of 43 global ports (199 berths in 23 countries) and in a parallel agreement 90 percent ownership of Panama Ports Company, which operates the terminals in Balboa and Cristobal, Panama. It later came out that TIL was negotiating for as much as 70 percent ownership of the international portfolio with BlackRock holding just 20 percent and 10 percent retained by CK Hutchison.

China has said it would be reviewing the deal to ensure it followed the rules although it has no official oversight role. Restructuring to add a portion of the investment from COSCO and possibly other Chinese companies could be seen as a face-saving move for the Chinese government. COSCO is a logical company to lead the Chinese portion as its COSCO Shipping Ports as of December 31, 2024, operated and managed 375 berths at 39 ports globally, of which 226 were for containers, with an annual handling capacity of approximately 124 million TEU.

Bloomberg points out that the exclusive agreement between Hutchison and the BlackRock/TIL group was for 145 days meaning it is due to expire in late July. They could agree to extend the exclusive agreement or it could open the door for alternate bids. Hutchison and BlackRock had said they were targeting signing definitive agreements on or before April 2.

 Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits

Workers carry out maintenance at the Pedro Miguel locks of the Panama Canal during routine upkeep in Panama City, Friday, May 30, 2025. (AP Photo/Matias Delacroix, File) 

By Kanis Leung - Associated Press - Friday, August 1, 2025

HONG KONG — A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company’s contract over its Panama Canal port assets has been faced with lawsuits in the Central American country.

Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement.

Panama’s Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was “abusive” of Panama’s interests.

In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas - Panama’s currency - to the country’s economy.

It said it wants to work with the government in Panama for a better future.

“Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,” it said.

The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city’s richest man.

Panama’s comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country.

CK Hutchison Holdings’ initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington.

U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.

After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company.

The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal.

Panama Ports Company said Friday it would communicate with the Panamanian government “at the appropriate time,” affirming that it believes engaging with the government “is vital to discuss the way forward for” the company.

Panama’s government maintains it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it.

Hutchison Calls for “Respectful Coordination” and Consultations with Panama

Hutchison has a 25-year concession to operate the terminals in Cristobal and Balboa (Panama Ports Company)

Published Aug 1, 2025 2:37 PM by The Maritime Executive

 

A day after Panama’s Comptroller announced that his office is seeking to void the concession for the terminal operations in Balboa and Cristobal, CK Hutchison issued a statement calling for coordination with the Government of Panama. The Hong Kong-based company is seeking to protect the concession, which is seen as one of its key assets, despite the political firestorm that has been created in 2025.

The Panama Ports Company was formed in 1997, and Hutchison owns 90 percent of the company, with the Government of Panama holding the remaining 10 percent. It is responsible for the operations of the terminals at each terminus of the Panama Canal. Balboa is the larger of the two terminals, handling approximately 2.3 million TEU in 2024, while Cristobal handled just over 1 million TEU. Most of the volume handled in the ports, however, is transshipments. Data shows that 90 percent of Cristobal’s volume is transshipments, while it is 95 percent at Balboa.

After Panama filed two lawsuits seeking to rule the contract extension for the terminals unconstitutional and void, Panama Ports Company, via Hutchison, responded with a statement calling for “respectful coordination and constructive consultations” to protect the concession. It highlights that it has had a positive impact on Panama, creating jobs and contributing to the economy.

“Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,” the company states.

Panama, under pressure from the Trump administration, has sought ways to reduce its involvement with China. The concession for the port terminals has become one of the focal points criticized by the Comptroller’s office, which contends the extension was not conducted legally in 2021.

Panama’s President Jose Raul Mulino yesterday, July 31, told reporters he did not think the concession would continue. He said they would await the court’s decision but suggested a new public-private partnership might be formed to run the terminals.

Panama has also been critical of the sale process after CK Hutchison agreed to sell its interest in the Panama company to a consortium led by BlackRock and MSC’s Terminal Investments Ltd. Hutchison addressed the criticisms in its statement.

“At the appropriate time within the sale process, PPC (Panama Ports Company) will communicate with relevant parties, including the Government of Panama,” writes Hutchison. “We affirm that we believe engagement with the Government of Panama is vital to discuss the way forward for PPC and that we want to work with the Government for a better future to support the people of Panama.”

China has been highly critical of the sale process, accusing the U.S. of driving it. China says the deal would threaten its global trade and has reportedly demanded a role for a Chinese company in the consortium. Hutchison confirmed at the beginning of the week that it was exploring reworking the deal and inviting a major Chinese company to participate in the purchase of its terminal portfolio.

 

China Lashes Out at Hutchison’s Ports Deal with BlackRock-MSC Partnership

Hutchison would sell its operations in 23 ports worldwide but much of the focus is on the terminals in Panama (CK Hutchison file photo)

Published Mar 14, 2025 12:13 PM by The Maritime Executive

 

After initially saying it would not comment on a “commercial deal,” the Chinese government used the media to lash out at the deal and criticize CK Hutchison. The proposed sale involves operations in 43 global ports outside China and the terminals at each side of the Panama Canal but is becoming embroiled in the larger political debate and the trade war between Trump and China as well as the government’s criticism of Hong Kong billionaire Li Ka-shing who controls CK Hutchison.

The government-owned newspaper Ta Kung Pao based in Hong Kong and seen as a mouthpiece for the Chinese Communist Party released a strongly worded editorial on Thursday, March 13, attacking the deal on patriotic terms. It cites the Trump administration's moves on tariffs and pending proposal for port fees on Chinese-built ships rolling it all into an American plot for domination. They warn the deal is part of a plot to deprive China of access to key shipping routes and global trade.

The New York Times highlights that the article says if the deal is completed, “the United States will definitely use it for political purposes and promote its own political agenda. China’s shipping and trade there will inevitably be subject to the United States.”

The reports cite that there has been a growing strain between Li Ka-shing and the Communist government which views him as supporting rival positions. The article calls CK Hutchison which said it would make $19 billion on the deal “profit-seeking,” and says it is “spineless groveling,” as well as a betrayal of the Chinese people. 

Saying that the deal goes against national interests, the editorial warns that the company “should think twice,” and “carefully,” about its position and where it stands. Official government sources quickly reposted the article which was seen as a further government endorsement of the positions.

Analysts said it was not surprising that China would speak out against the deal but it might just be bluster as it does not want to lose its position in major ports such as Felixstowe in the UK, Rotterdam, Europe, Australia, South America, and Asia. CK Hutchison however would retain its Chinese ports meaning China does not have to approve the deal.

The sale of the two terminals in Panama at Balboa and Cristobal was positioned as a parallel but separate transaction. The government of Panama has already said it would be reviewing the sale and now Bloomberg speculates that Panama might use China’s criticism to reject the sale. Trump hailed the BlackRock deal as a key component to regaining control of the Panama Canal but NBC News reported yesterday Trump has also asked for plans to place a U.S. military presence in Panama possibly to seize the canal.

The terms of the sale are for a partnership with BlackRock and MSC Mediterranean Shipping Company’s Terminal Investment Limited (TiL). MSC has taken a low profile in the media creating the impression that the deal is BlackRock’s. 

Hutchison has not responded to the criticism of the deal but the value of its stock plunged as investors feared the sale might not proceed. The company had set the beginning of April as a target for a final agreement.

TRUMP MERCANTILISM

BlackRock acquires Panama ports from Hong Kong firm amid Trump pressure

Panama City (AFP) – Hong Kong firm Hutchinson sold its Panama Canal ports to US company BlackRock after US President Donald Trump's refused to rule out a military invasion of Panama to retake control of its strategic canal, which Trump says China controls.


Issued on: 04/03/2025 - 
By:FRANCE 24   

US President Donald Trump has refused to rule out a military invasion of Panama to regain control of the canal © MARTIN BERNETTI / AFP


Under fierce pressure from US President Donald Trump, Hong Kong firm Hutchison said Tuesday it had agreed to sell its lucrative Panama Canal ports to a US-led consortium.

CK Hutchison Holdings said it would offload a 90-percent stake in the Panama Ports Company (PPC) and sell a slew of other non-Chinese ports to a group led by giant asset manager BlackRock.

The sellers will receive $19 billion in cash, the company said in a statement.

Hutchison subsidiary PPC has for decades run ports at Balboa and Cristobal on the Pacific and Atlantic ends of the interoceanic waterway.


But since taking office in January, Trump has complained that China controls the canal -- a vital strategic asset that the United States once ran.

Read moreThe Chinese interests behind Trump’s Panama Canal bluster

Trump refused to rule out a military invasion of Panama to regain control, sparking angry protests and a complaint to the United Nations by the Central American nation.

In a joint press release with the buyers, Hutchison said the deal was motivated by business, not politics.

"I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports," co-managing director Frank Sixt said.

"This transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received," said Sixt, who described the chosen agreement as "clearly in the best interests of shareholders."

BlackRock CEO Larry Fink said the transaction demonstrated his consortium's capacity to "deliver differentiated investments for clients."

"These world-class ports facilitate global growth," he added.

The Panamanian government, for its part, said the sale was "a global transaction, between private companies, driven by mutual interests."

It added that an audit launched into the PPC by the Panamanian comptroller's office that oversees public entities will continue in spite of the sale.
43 ports

The deal entails 43 ports comprising 199 berths in 23 countries.

CK Hutchison Holdings is one of Hong Kong's largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.

It is owned by Hong Kong billionaire Li Ka-shing.

In February, Marco Rubio visited Panama on his first overseas trip as secretary of state, proof of the canal's importance to the new administration.

Rubio won a commitment from Panamanian President Jose Raul Mulino to exit the Belt and Road Initiative, China's signature infrastructure-building program.

He also pressed for free passage of US vessels through the Panama Canal, which was denied.

Since 1999, the canal has been run by the Panama Canal Authority (ACP) -- an autonomous entity whose board of directors is appointed by Panama's president and National Assembly.

The 80-kilometer (50-mile) long canal handles five percent of global maritime trade, and 40 percent of US container traffic.

Beijing has consistently denied interfering in the canal.

(AFP)

Ports sale offers Panama way out of Trump row: experts


By  AFP
March 4, 2025


Under fierce pressure from US President Donald Trump, Hong Kong firm Hutchison has agreed to sale two ports it operates at the entrance to the Panama Canal to a US-led consortium - Copyright AFP Pedro Pardo

Juan José Rodríguez

The decision by Hong Kong firm CK Hutchison to sell its Panama ports to a US-led consortium provides the Central American country with a convenient way out of its standoff with President Donald Trump, experts said Tuesday.

Trump has been fixated on the question of who controls shipping in the Panama Canal, which was built by Washington over a century ago to link the Pacific and Atlantic oceans and later handed over to Panama.

The Republican leader has repeatedly threatened the use of force to seize the canal, claiming that Hutchison’s ownership of two ports, one at either entrance to the canal, gave China control over the strategic waterway which links the Pacific and Atlantic oceans.

Panama rejected the claim that China had de facto control over the canal, which handles 40 percent of US container traffic, while taking various actions to appease Trump.

Its campaign to dodge his fury received a major boost on Tuesday with Hutchison’s announcement that it would offload its ports to a group led by giant US asset manager BlackRock.

The sale offers Panama “a way out of the diplomatic crisis without needing to cancel (Hutchison’s) concession, which would further damage the investment climate in Panama,” Benjamin Gedan, director of the Latin America program at the Washington based Wilson Center think tank told AFP.

Panama’s government insisted that it had no hand in Hutchison’s sale, insisting it was a deal “between private companies.”

Frank Sixt, co-managing director of CK Hutchison, also argued that the deal was “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”

But analysts said it came as a relief nonetheless for President Jose Raul Mulino, who had been under fierce pressure to reduce China’s footprint in the country, without riling the second-largest user of the canal after the United States.

In January, his government ordered an audit of Hutchison’s Panamanian subsidiary, Panama Ports, in what was seen as a shot across the bow at the group owned by businessman Li Ka-shing, one of Asia’s richest men.

In the end, one of Hong Kong’s largest conglomerates decided itself to bow to Trump’s pressure.

“In the Trump era, business is the new geopolitics,” Sabrina Bacal, a Panamanian political scientist, told AFP.

– ‘Taking back’ the canal –



In his inauguration speech on January 20, Trump declared the United States was “taking back” the Panama Canal, claiming China operated it.

On a visit to Panama two weeks later, US Secretary of State Marco Rubio issued Mulino with an ultimatum to immediately reduce Chinese influence on the canal or face unspecified “measures.”

Panama sought desperately to appease the Trump administration by first pulling out of China’s massive Belt and Road infrastructure program and then offering to act as a beachhead for Trump’s mass migrant deportations.

Panamanian authorities also began piling pressure on Hutchison, which handled 39 percent of the containers that passed through Panamanian docks in 2024, according to the Panamanian Maritime Authority.

The country’s Supreme Court agreed to consider two requests to annul the ports concession granted to Hutchison, which Panama’s attorney general claimed was unconstitutional.

The concession was first awarded in 1997 and extended for 25 years in 2021.

While Hutchison’s sale of the ports is expected to silence Trump’s criticism of Chinese involvement in the canal, he could however continue to complain that US vessels are being overcharged to use the waterway.

Last month, the US State Department claimed that Panama had agreed to let US naval vessels through for free — a claim denied by the Panama Canal Authority, the independent agency that runs the shipping route.

 

Coscso Seeks 20% of Hutchison Deal as US Calls for Ouster from Panama

U.S. Ambassador Cabrera visiting the Panama Canal earlier this year (US Embassy photo)

Published Aug 8, 2025 11:19 AM by The Maritime Executive

 

The political “tug-of-war” surrounding controls of the port terminals at the Panama Canal and CK Hutchison’s larger portfolio of 41 port operations worldwide continues with China exerting pressure and the U.S. reiterating its position to end the Panama concession. CK Hutchison confirmed last month that talks were ongoing and that a Chinese company would be invited into the discussions after the lockup period on the original deals expired in late July.

China’s Cosco, which is already a large port operator, is seeing at least a 20 to 30 percent share of the deal, according to a new report in today’s Financial Times. The paper cites two unnamed sources that said China has only permitted Cosco to enter the talks to maintain its leverage over the deal. China has made it clear that its position is that a Chinese company must be part of the deal to protect Chinese trade interests.

The Financial Times says several options are being discussed, including the possibility that Cosco would participate in the one deal that acquires Hutchison’s 41 global ports outside China and excluding the two terminals in Panama. The original agreement set parallel deals, one for the 41 ports, which is believed to be led by MSC’s Terminal Investments (TiL), while the second deal, led by BlackRock and with MSC as a minority investor, would acquire the Panama Ports Company, which operates the terminals in Balboa and Cristobal under long-term concessions.

Donald Trump had hailed the deal in March, saying it was returning the Panama Canal to the United States. A friend of the CEO of BlackRock, Larry Fink, Trump said the American company was acquiring many ports. Since then, the U.S. has remained largely quiet on its views of the deal.

U.S. Ambassador to Panama Kevin Marino Cabrera, on Wednesday, August 6, however, spoke out against CK Hutchison. He supported the legal actions taken by Panama’s Comptroller General to void the concession. He said that the U.S. was “excited” that Hutchison would soon be no longer operating the ports in Panama.

“Our position is that they are a bad operator; they haven't done a good job,” Cabrera told reporters during an event in Colon. “They are a company of the Chinese Communist Party…  We are excited that those ports will soon be out of operation, and that good operators willing to contribute to the Panamanian people will come to the country.”

The Panama Ports Company dates to 1997 and was set up with CK Hutchison holding 90 percent, with Panama owning 10 percent. The company’s concession was renewed for an additional 25 years in 2021 in what is now a contested process.

Cabrera asserted that the Panama Ports Company (PPC) has not honored its agreements and owes Panama money. He also linked the company to the Communist government, although Hutchison is based in Hong Kong. Founder, Li Ka-shing, a Hong Kong billionaire, has frequently been at odds with the Chinese government, and this year it accused him of being disloyal and not acting in the interest of the state after the deals were announced to sell the port terminals.

Hutchison has defended its operations in Panama, saying the company has followed all the legal requirements. It asserts that it has contributed to the Panama economy. The company said in a statement in April that PPC has made significant investments that exceed $1,695 million, 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 Panama.

The shipping industry continues to watch the developments as well. CMA CGM confirmed that it would be interested in some of the assets, and Maersk said it is also watching the deal closely. The Financial Times says none of the shipping companies have been invited into the negotiations, and it notes any bidder would need to involve the Chinese to win approval for an acquisition.

Panama to Require Full Traceability for Offshore Oil Transfers

Published Aug 8, 2025 9:11 AM by The Maritime Executive

 

[By: Panama Maritime Authority]

The Panama Ship Registry has become the first naval registry in the world to implement stricter controls and mandatory traceability for offshore ship-to-ship (STS) transfers of hydrocarbons. This new measure, which came into effect on August 6, 2025, is outlined in Resolution No. 106-035-DGMM issued by the Directorate General of Merchant Marine. According to Article 9 of the resolution, non-compliance—depending on its severity—may lead to the cancellation of a vessel’s Panamanian registration.

The regulation requires all Panamanian-flagged oil tankers with a gross tonnage of 150 or more to notify the Panama Maritime Authority (PMA) at least 48 hours in advance, providing full technical and logistical details of each STS operation.

The mandatory information includes:

• Name, flag, call sign, IMO number, and estimated time of arrival (ETA) of all vessels involved
• Date, time, and geographical coordinates of the operation’s start
• Type of maneuver: at anchor or underway
• Type and quantity of hydrocarbons to be transferred
• Estimated duration of the operation
• Contact information for each vessel’s Designated Person Ashore (DPA)
• Confirmation of an STS plan in accordance with Regulation 41 of the MARPOL Convention

If the estimated arrival time at the transshipment point varies by more than six hours, the vessel’s captain, owner, or DPA must update the notification to the PMA.

This measure responds to the increasing use of vessels in illicit activities such as covert crude transport, sanctions evasion, and operations lacking environmental controls—practices often associated with the so-called “shadow fleet.”

It aligns with International Maritime Organization (IMO) regulations and underscores Panama’s commitment as a responsible flag State, promoting maritime safety, operational integrity, and protection of the marine environment.

With this move, Panama reaffirms its global leadership in maritime regulation—enhancing trust in its registry, ensuring compliance with international standards, and contributing to the fight against the misuse of flags of convenience.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Panama is First Registry to Enforce Rules to Crack Down on STS Actions

Panama started it rule cracking down on STS transfers targeting the shadow fleet (MMEA)

Published Aug 7, 2025 7:00 PM by The Maritime Executive

The Panama Ship Registry started its new rules as of August 6, requiring reporting of planned ship-to-ship (STS) offshore oil transfers as the latest step in a series of crackdowns targeting the shadow tanker fleet. Panama had announced plans for the new rules in May, and highlights that with the rule now in effect, it has become the first registry in the world to implement stricter controls and mandatory traceability for offshore ship-to-ship (STS) transfers of hydrocarbons.

“This measure responds to the increasing use of vessels in illicit activities such as covert crude sanctions evasion, and operations lacking controls, practices often associated with the so-called “shadow fleet,” the Panama Ship Registry says in its announcement. It warns that “non-compliance—depending on its severity—may lead to the cancellation of a vessel’s Panamanian registration.”

The regulation requires all Panamanian-flagged oil tankers with a gross tonnage of 150 or more to notify the Panama Maritime Authority (PMA) at least 48 hours in advance, providing full technical and logistical details of each STS operation. In addition to the details on the vessels involved, they must supply the location, the type of transfer, and the quantity to be transferred. If the operation varies by more than six hours, the captain or shipping company must update the details reported to the PMA.

The shipping companies are also required to supply contact details for a designated person ashore. They must also confirm that the STS plans are in accordance with the IMO’s MARPOL Convention.

Putting the STS rule into effect follows another move by the registry this week, also targeting the shadow tanker fleet. It said it will no longer accept the registration of tankers (and bulkers) that are more than 15 years old. It said an analysis of data showed the older vessels accounted for most of the detentions. 

Panama, under pressure from the U.S. and others, has moved to purge its registry and enacted new rules to make it faster and less complicated to remove ships that are sanctioned or have other violations. Demonstrating this, Panama reported this week it had removed 17 tankers sanctioned days earlier by the United States in a crackdown on an Iranian shipping network.

Panama is the latest in a growing number of jurisdictions seeking to tighten enforcement against the shadow tanker fleet. Greece, last year, closed a bay favored by tankers in the Russian oil trade. Last week, Malaysia, which is already known for its enforcement against illegal anchoring, announced new rules on another key area favored by shadow tankers to make transfers. Malaysia created new anchoring regulations and closed the area to most tankers. In Europe, efforts have focused on the enforcement of the requirements for insurance and proper certification. 

Despite this, the shadow tanker fleet continues to grow. The latest estimates put it at over 1,100 vessels, although the EU and UK sanctions have driven some tankers from the trade. 

The efforts to reduce STS will impact tankers both in the Russian oil trade and those supporting Iran. Both are known to use STS and other efforts to hide the origins of the oil or to mix it with other sourced oil to make the blend less identifiable.
 

 

US, China raise the stakes in Panama Canal ports row


By AFP
March 29, 2025


The CK Hutchison deal allowed US President Donald Trump to claim credit for "taking back" the Panama Canal (pictured) according to analysts - Copyright AFP ARNULFO FRANCO

Holmes Chan, with Luna Lin in Beijing

China’s fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say.

Hong Kong conglomerate CK Hutchison this month sold 43 ports in 23 countries — including operations in the vital Central American canal — to a group led by giant asset manager BlackRock for $19 billion in cash.

After two weeks of rhetoric, Beijing hardened its response on Friday and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned.

Speaking before the review was announced, experts told AFP that the deal allowed US President Donald Trump to claim credit for “taking back” the canal as part of his “America First” agenda.

“The US (created) a political issue at China’s expense and then has been able to declare victory,” said Kurt Tong, managing partner at The Asia Group and a former top US diplomat to Hong Kong.

“That doesn’t feel good in Beijing.”

Some of the ports being sold are in nations that participate in Beijing’s Belt and Road Initiative (BRI) — a global development framework championed by Chinese President Xi Jinping.

Ports are crucial to that network and China “has been notably successful in this area”, said Henry Gao, a trade law expert at the Singapore Management University.

Last month, Panama formally exited the BRI following a visit from US Secretary of State Marco Rubio.

“There is indeed a growing trend of ‘weaponising’ ports and trade infrastructure as tools of geopolitical leverage,” Gao said.



– ‘Nightmare’ scenario? –



On March 4, CK Hutchison sent shockwaves through China’s shipping industry by announcing a deal of “unprecedented scale”, according to Xie Wenqing, a port development researcher at the Shanghai International Shipping Institute.

Chinese shipping firms questioned whether they could ensure neutral passage once the ports changed hands, he told AFP.

“There are concerns about additional costs for Chinese ships or discriminatory treatment in terms of queuing orders,” he added, highlighting the long-arm jurisdiction of US authorities.

The deal — coupled with recent US tariff hikes — could undermine China’s manufacturing dominance, argued Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China.

“Increased inspections and additional docking costs would erode China’s competitive edge and disrupt global supply chains,” he noted.

The United States has used various justifications to target key infrastructure projects under the Belt and Road Initiative “to strip away these assets and weaken China’s position as the world’s factory”, Wang added.

John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies, said the deal would not serve China’s interests but said some concerns were “overblown”.

Port operators such as CK Hutchison are commercial entities constrained by law and cannot decide matters of national sovereignty, for example whether a ship could visit a port or not.

“If (operators) were to blatantly favour one company over another, that would generally speaking… be illegal,” Bradford said.

“Most countries have laws which say you have to treat different customers similarly, so the nightmare scenarios are not particularly realistic.”



– Hong Kong’s role –



Beijing’s next steps in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China’s business gateway to the world, according to analysts.

“This whole Panama ports issue has refocused attention on the question (of) whether Hong Kong is a good place to put assets or to do business,” said Tong, the former diplomat.

“Certainly the foreign business community operating in Hong Kong is watching this issue very closely.”

CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China.

That did not stop the State Administration for Market Regulation from announcing the antitrust review on Friday.

Jet Deng, a senior partner at the Beijing office of law firm Dentons, said China’s antitrust laws can be applicable outside its borders, similar to those of the United States and the European Union.

Once a deal meets China’s reportability threshold, a declaration is required even if the transaction takes place abroad, as long as the parties involved had substantial operations in mainland China, he said.

Firms that fail to declare may be fined for up to 10 percent of their operating income from the preceding year, Deng added.

Hung Ho-fung, a political scientist at Johns Hopkins University, said Beijing risks spooking “cautious” foreign firms that have already lowered their business exposure in Hong Kong.

If the deal crumbles under Chinese pressure, people may believe that Hong Kong is converging with mainland China where “national security considerations are of utmost importance in any business deal”, Hung said.