Panama Port Company: Panama Government Continuously Damages Its Foreign Investment Destination Reputation

Hutchison (00001) subsidiary Panama Port Company (PPC) issued a statement, stating that the recent and ongoing actions of the Republic of Panama, weeks after improperly taking over the container terminals at Balboa and Cristóbal ports, continue to undermine its reliability as a foreign investment destination.

The Panamanian government did not respond to the international arbitration initiated by Panama Port Company before the original deadline of March 13, 2026 (Friday). The government claims it was unprepared and unable to respond in a timely manner, citing reasons such as not having hired legal counsel, unfamiliarity with the dispute, and the need to develop a plan to request a partial extension. Despite recent public claims that it has been planning to take over the two container terminals over the past year, Panama Port Company had already issued a dispute notice over the government’s abuse of power more than a year ago. The Panamanian government’s long-term neglect of the repeated requests from Panama Port Company and its investors for resolution indicates it may fabricate and publish more unfounded accusations during arbitration proceedings. A country that respects foreign investors would not ignore consultation mechanisms and international dispute resolution processes.

During and after the aggressive occupation, sudden searches, and seizure of Panama Port Company’s facilities and assets, the Panamanian government continued to disregard the rule of law. Panama Port Company has maintained good cooperation with Panama on concession agreements, port infrastructure, and security matters, and is a reputable foreign investor. The government not only halted operations at the two container terminals but also interfered with the legitimate roles and rights of port suppliers, including multiple Panamanian companies, and signaled media suppression of Panama Port Company’s external communications. A country that respects foreign investment would not take radical administrative actions, forcibly take over investors’ facilities and assets, or recklessly breach contractual agreements.

The Panamanian government also continues to improperly seize investor documents, refusing Panama Port Company access to its own files, computer equipment, and proprietary legally protected documents. These documents were seized by the government from the two container terminal facilities and a private document storage site; at the time, armed personnel entered the terminals without prior notice, claiming to be “port operations,” and forcibly took Panama Port Company’s documents. The government even demands that Panama Port Company request the return of its own documents during ongoing international arbitration, attempting to delay the arbitration process. A country that respects foreign investors would not unlawfully seize documents or trample on proper legal procedures.

These actions demonstrate that the Panamanian government, by violating contracts, laws, and international norms, disregards foreign investment. For Panama Port Company and its investors, the government’s conduct has caused serious and ongoing harm. Panama Port Company and its investors reserve all legal rights and claims against the Panamanian government.