Hong Kong conglomerate says Panama Canal ports seized by authorities

CK Hutchison says the Panamanian government has taken ‘administrative and operational control’ of its two ports on the canal.

The government of Panama has seized control of two ports on either end of the Panama Canal from a Hong Kong conglomerate following a recent ruling by the country’s Supreme Court.

Hong Kong’s CK Hutchison said on Tuesday that Panama’s government had “made direct physical entry into the terminals at Balboa and Cristobal” and assumed “administrative and operational control” over the two ports on the Panama Canal.

The company said the “unlawful” takeover reflects the culmination of a campaign by the Panamanian state against its subsidiary, Panama Ports, following the Supreme Court ruling last month.

According to a government decree, the Panama Maritime Authority has been authorised to occupy the ports for “reasons of urgent social interest”, according to The Associated Press (AP) news agency.

The maritime authority also has the right to take over port property, including computer systems and cranes, according to the decree.