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2w ago

Audit Reveals CK Hutchison Owes Panama $1.2 Billion in Unpaid Port Fees

Panama to file legal complaint as Chinese regulatory scrutiny stalls CK Hutchison's $19 billion global port sale.

Panama Ports, a subsidiary of logistics giant CK Hutchison, won the concession to operate Balboa port on the Pacific side of the canal and Cristobal port on the Atlantic side in 1997
FILE - Cargo containers sit stacked as cranes load and unload containers from cargo ships at the Cristobal port, operated by the Panama Ports Company, in Colon, Panama, Feb. 4, 2025. (AP Photo/Matias Delacroix, File)
FILE - Cargo containers sit stacked as cranes load and unload containers from cargo ships at the Panama Canal's Balboa port, operated by the Panama Ports Company, in Panama City, Jan. 31, 2025. (AP Photo/Matias Delacroix, File)
A ship sails near the Balboa Port after Hong Kong's CK Hutchison Holdings Ltd 0001.HK agreed to sell its interests in a key Panama Canal port operator to a BlackRock Inc-backed consortium, amid pressure from U.S. President Donald Trump to curb China's influence in the region, Panama City, Panama, March 4, 2025. REUTERS/Enea Lebrun/File Photo

Overview

  • An official audit found CK Hutchison's subsidiary breached its contract to operate two Panama Canal ports, resulting in $1.2 billion in unpaid fees to Panama.
  • Panama's state comptroller, Anel Flores, announced plans to file a legal complaint with prosecutors over the unpaid concession fees.
  • The concession to operate the Balboa and Cristobal ports was initially awarded in 1997 and renewed for another 25 years in 2021.
  • CK Hutchison recently agreed to sell 43 ports, including the Panama Canal terminals, to a BlackRock-led consortium for $19 billion, but the deal faces delays due to Beijing's antitrust review.
  • The dispute highlights broader geopolitical tensions, with the U.S. pressuring Panama to reduce Chinese influence in the strategically vital canal region.