Displaying items by tag: C K Hutchinson

The two key ports at either end of the Panama Canal have been taken over by the Panamanian government. This follows a supreme court ruling last month that the renewed 25-year concession given to Hong Kong conglomerate CK Hutchison to operate the ports was ‘unconstitutional’. The authorities have entered the terminals at Balboa and Cristobal and assumed administrative and operational control. A government decree authorised the Panama Maritime Authority to do this ‘for reasons of urgent social interest’. Beijing described the ruling as ‘absurd’ and ‘shameful’, while warning that the Latin American country would pay ‘heavy prices both politically and economically’; in response, president Jose Raul Mulino defended Panama’s judicial independence and strongly rejected China’s threats. The takeover marks a significant development in the strategic and political debate surrounding one of the world’s most vital shipping routes.