Panama Port | CKH Holdings initiates international protection mechanism, requests authorities to negotiate, accuses Maersk of causing damage

CKH Holdings (001) announced that it has notified Panama regarding the port dispute under the investment protection treaty and invited the country for consultations, actively seeking solutions. CKH Holdings has also issued a notice to Maersk, which is willing to take over CKH Holdings' two ports, stating that such actions would cause damage to CKH Holdings and trigger legal actions; it also warned third parties not to collude in any illegal actions regarding the operations of the two container terminals. It is reported that if the authorities forcibly take over the two ports, it would ultimately force the entire terminal to cease operations. Continuing Legal Proceedings Domestically and Internationally CKH Holdings stated that the dispute notification issued under the investment protection treaty is based on a series of actions taken by Panama, including the decision by the Supreme Court of Panama declaring that CKH Holdings' Panama port company's franchise is unconstitutional. CKH Holdings further stated that, in addition to the arbitration proceedings initiated by the Panama port company under the franchise agreement, CKH Holdings will continue to consult legal advisors to explore all feasible avenues, including further resorting to domestic and international legal proceedings against Panama and its agents, as well as third parties colluding with them. Regarding the port operations, CKH Holdings pointed out that the Panamanian government has yet to provide any guarantees or clear explanations regarding the operations of CKH Holdings' Panama port company at Balboa Port and Cristobal Port, and continues to force actions to stop or take over operations, causing further disruptions and damages. The group indicated that once the ruling is officially issued, the franchise of the Panama port company would be forcibly terminated, and the immediate consequence would be the inability to operate the Balboa Port and Cristobal Port container terminals. CKH Holdings stated that whether the two ports can continue operations at this stage entirely depends on the actions of the Supreme Court of Panama and the Panamanian government, which are clearly beyond the control of CKH Holdings, Hutchison Ports, and the Panama port company. On the other hand, the Panama Maritime Authority has stated that it relies on APM Terminals, a subsidiary of Maersk, to become the temporary manager of CKH Holdings' two ports, and Maersk has also expressed willingness to take over. CKH Holdings pointed out that any takeover of the two ports at any time and in any manner would cause damage to CKH Holdings, Hutchison Ports, and the Panama port company, and would trigger legal actions against APM Terminals or any affiliated companies involved. CKH Holdings reiterated that it will continue to make every reasonable effort to ensure that the Panama port company takes all feasible measures to protect the employees involved in operations, avoid disruptions to port operations, safeguard the interests of customers and suppliers, and maintain the flow of vessels and cargo through the Panama Canal, but this requires prior permission from the Supreme Court of Panama and the Panamanian government. News: Unable to Operate Even if Taken Over It is reported that CKH Holdings' release of this information serves as a warning to the Panamanian government and Maersk, with sources indicating that the systems within the facilities of the two ports in Panama, once forcibly taken over by APM Terminals, may not be able to connect to these systems at all. Even if the terminal is ultimately taken over, it would be unable to operate in the future and would be forced to cease operations