CK Hutchison Holdings said it has escalated its legal challenge in Panama after authorities moved to seize control of port operations previously run by the company.

The conglomerate accused the government of unlawfully occupying facilities and confiscating property, prompting the company to pursue additional national and international legal action.

Administrative Petition Filed

CK Hutchison’s local subsidiary, Panama Ports Company, has filed an administrative petition seeking reconsideration of the executive decree that allowed authorities to take over the facilities.

The dispute centers on two major terminals located near the Panama Canal, one of the world’s most important maritime trade corridors.

The company said the government’s actions included occupying facilities and seizing operational assets while bypassing consultation procedures.

Contracts Annulled by Government

Panama’s government annulled the agreements that granted CK Hutchison control over the two canal ports earlier this year.

Officials said the decision followed a court ruling that declared the original contracts unconstitutional.

Authorities also carried out a search of the company’s local port operations last week, further escalating tensions between the two sides.

Temporary Operators Appointed

Panama has announced that the disputed terminals — the Balboa Port and Cristobal Port — will temporarily be operated by shipping giants Maersk and Mediterranean Shipping Company.

The move ensures that operations at the key ports continue while the legal dispute unfolds.

Global Ports Deal Adds Complexity

The conflict also comes amid CK Hutchison’s broader plan to sell dozens of ports worldwide in a deal valued at approximately $23 billion.

The proposed transaction involves a consortium led by BlackRock and Mediterranean Shipping Company and includes the Panamanian terminals at the center of the dispute.

The deal has attracted geopolitical attention, with officials in China criticizing the transaction while Donald Trump publicly supported efforts to reduce Chinese influence over infrastructure tied to the Panama Canal.

Strategic Importance of the Canal

The Panama Canal remains a critical artery for global trade, connecting the Atlantic and Pacific oceans and handling a significant share of global shipping traffic.

Control and management of nearby ports therefore carry both economic and geopolitical implications, making the current dispute closely watched by governments, investors, and the maritime industry.