Source: Global Times

[Global Times reporter Bai Yunyi] According to Efe news agency in Spain on the 19th, Panamanian President Laurentino Cortizo accused the Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, of having violated regulations during its operation of two major ports on the Panama Canal over nearly 30 years. According to Reuters and the South China Morning Post, on the 19th, Lu Lufan, Executive Director of Cheung Kong (Holdings) Limited, said at the company's annual full-year performance report press conference for 2025 that the company continues to discuss the sale of the ports with relevant parties.

In early January this year, the Supreme Court of Panama declared the contract authorizing PPC to operate the port terminals in Panama invalid on the grounds of "unconstitutionality." In February, the Panamanian government forcibly entered and took over the Balboa Port and Cristobal Port operated by PPC. In March, PPC issued a statement saying that it had initiated an international arbitration under the rules of the International Chamber of Commerce, claiming at least 2 billion US dollars in compensation.

The statement by Cortizo is seen as a response to PPC's previous claim. PPC issued a statement on the 16th saying that the International Arbitration Tribunal under the International Chamber of Commerce (ICC) set a deadline of March 13 for the above arbitration process. The Panamanian government applied for a partial extension, citing not having hired a lawyer and needing time to prepare. Analysts believe that in international commercial arbitration, not hiring a lawyer usually means being unable to submit an effective legal defense.

According to Reuters and AFP, Cortizo responded to the above statement on the 19th at an event in Panama City, saying, "We have appointed international lawyers to represent us in court." He said the Panamanian government has only two days to respond to the international arbitration process, so there was a slight delay.

On the same day, Lu Lufan, Executive Director and Chief Financial Officer of Cheung Kong (Holdings) Limited, said that Cheung Kong and PPC will continue to work diligently with legal counsel to seek all applicable legal remedies through domestic and international procedures to resolve the situation where the contracts for the two ports in Panama were taken over by the authorities.

Lu Lufan also stated that Cheung Kong Group will update on the progress of the arbitration at the appropriate time and confirmed that it is still negotiating with consortium members and major strategic investors from mainland China regarding the sale of global port assets. He said, "We are still proceeding as planned with negotiations with the original buyer consortium and significant financial strategic investors from mainland China regarding the sale of the ports."

Original: toutiao.com/article/7619476435162284607/

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