Hong Kong-based CK Hutchison Holdings is expected to move forward with selling its remaining port assets, despite Panama’s Supreme Court nullifying its contract for two terminals at either end of the country’s geostrategically vital canal, according to experts.
But the effort by billionaire Li Ka-shing’s conglomerate to offload the rest of its ports would still face scrutiny from Beijing and local authorities, and the overall deal might need to be re-evaluated, experts told the South China Morning Post on Saturday.
Panama’s Supreme Court annulled on Thursday the contract held by CK Hutchison subsidiary Panama Ports Company (PPC) to operate the Balboa and Cristobal terminals at either end of the strategic waterway, ruling that it was unconstitutional.
Control of the key trade artery has become a geopolitical flashpoint in the Sino-US rivalry, which was starkly reflected in how each side responded to the ruling – Beijing and Hong Kong authorities slammed the decision while Washington welcomed it.
Panamanian President Jose Raul Mulino has since said that until the court’s ruling becomes final, the country’s maritime authority will work with PPC to ensure the canal’s continued operations.
APM Terminals Panama, a subsidiary of the Danish shipping group Maersk, has also affirmed its willingness to operate the ports on a temporary basis if required.
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