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Hong Kong firm begins arbitration proceedings over ruling against its Panama Canal port contract

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Hong Kong firm begins arbitration proceedings over ruling against its Panama Canal port contract
News

News

Hong Kong firm begins arbitration proceedings over ruling against its Panama Canal port contract

2026-02-04 12:28 Last Updated At:13:26

HONG KONG (AP) — Hong Kong’s CK Hutchison Holdings said Wednesday its subsidiary started arbitration proceedings against Panama after that country's Supreme Court ruled a concession for the subsidiary to operate Panama Canal ports was unconstitutional.

Hutchison said it strongly disagreed with last week's ruling, and China warned Panama would pay “a heavy price" if it persisted. Panama’s president has moved to assure the public that the ports would operate without interruption after the ruling, which advanced a U.S. aim to block any influence by China over the canal linking the Atlantic and Pacific oceans.

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Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Hutchison's subsidiary, Panama Ports Company, began arbitration proceedings Tuesday under the rules of the Paris-based International Chamber of Commerce, the company said in a statement.

The rules are overseen by the chamber's International Court of Arbitration, an independent body, and it's unclear what the impact of the proceedings would be. The Panamanian president’s office and commerce ministry did not immediately respond to requests for comment late Tuesday local time.

The court ruling has drawn backlash from China, and the tensions may complicate Hutchison's plan to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc.

The planned sale has already been caught up in tensions between Beijing and Washington. U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.

On Tuesday night, Beijing's office overseeing Hong Kong affairs criticized the Panama court ruling as legally groundless and ridiculous, saying the ruling reflected that Panamanian authorities were bowing down to hegemonic powers. It did not specify the countries but pointed to politicians from some countries who had said they were “encouraged” by the ruling, in an apparent veiled reference to U.S. Secretary of State Marco Rubio.

In a statement shared on social media platform WeChat, the office said that China will never bow to hegemonism and has sufficient means and tools, as well as capability, to uphold justice in the international economic and trade order.

“Panama’s authorities should recognize the situation and correct their course," it said. “If they persist in their own way and refuse to see reason, they will pay a heavy price both politically and economically!”

The Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997. The awkward position Hutchison found itself in highlights the challenges Hong Kong business elites face in navigating Beijing’s expectations of national loyalty, especially during U.S-China tension. CK Hutchison is owned by the family of Hong Kong’s richest man, Li Ka-shing.

The company said last July that it was considering seeking a Chinese investor to join as a significant member of the consortium under its sale plan, a move that some interpreted as way to please Beijing, but CK Hutchison hasn’t said more since.

The consortium also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, which is chaired by Italian shipping scion Diego Aponte, whose family reportedly has a longstanding relationship with Li’s.

Last May, Hutchinson co-managing director, Dominic Lai told shareholders that Terminal Investment was the main investor.

Panama’s government has maintained it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it. But Rubio made clear that the U.S. viewed the operation of the ports as a national security issue.

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)

RALEIGH, N.C. (AP) — Hold on to those Thanksgiving turkeys! WKRP is coming to Cincinnati — for real this time.

“I cannot, by contract, tell you when. I cannot tell you who. But I can tell you, direct to the camera, WKRP, after 48 years, is coming to Cincinnati,” D.P. McIntire, who runs the media nonprofit that is auctioning the famous call letters, told The Associated Press. “Book it! It’s done!”

The call sign was made famous by “WKRP in Cincinnati,” a CBS television sitcom that ran from 1978 to 1982. It made stars of actors like Loni Anderson and Richard Sanders, whose bumbling newsman Les Nessman reported on a Thanksgiving promotion gone bad when live but flightless turkeys were dropped from a helicopter.

McIntire remembers watching the show’s first episode — featuring disc jockeys Dr. Johnny Fever (Howard Hesseman) and Venus Flytrap (Tim Reid) — in the living room with his parents and older sister.

“And at the end of the 30-minute episode,” he said, “I got up and I proclaimed, `I’m going to be in radio. And if I ever have the opportunity, I’m going to run a station called WKRP.’”

McIntire said he got his first on-air job at 13 as a news anchor at WNQQ “Wink FM” in Blairsville, Pennsylvania.

Fast forward to 2014, when his North Carolina-based nonprofit acquired the call sign from the Federal Communications Commission. Stations in Dallas, Georgia, and Alexandria, Tennessee, previously bore the letters.

McIntire laughs as he recalls his chat with a woman in the agency’s audio division.

He had two sets of call letters in mind. She told him he needed a third.

“Being the jokester that I am, I said, `Well, if you need three, and if it’s available, we’ll take WKRP,’” he said. “And 90 seconds later, she came back and she said, `Mr. McIntire. Congratulations. You’re the general manager of WKRP in Raleigh, North Carolina.’”

WKRP-LP — 101.9 on the FM dial — went live Nov. 30, 2015. The LP stands for “low power,” a class of station created to serve more local audiences that didn’t want mass-market content.

“Our format is what radio used to be 35 years ago in small-town America,” he said. "There is Greats of the ‘80s, Sounds of the ’70s, '90s Rewind," as well as local news and “specialty programming.”

LPFM is restricted to nonprofit organizations like his Oak City Media, and it’s definitely local.

“Your broadcast capacity is limited to 100 watts,” McIntire said. “So, your average range is between, depending on your terrain and circumstances, 4 and 12 miles (6 and 19 kilometers) in any direction. Enough to cover a small town.”

And, by necessity, it’s a low-budget affair.

The transmitter is in a corner of McIntire’s garage, between a recycling bin and the cleaning supplies. The broadcast antenna sits atop a 25-foot (7.62-meter) metal flagpole in the backyard. The studio — microphones and a mixing board hooked up to a computer — is on the first floor of McIntire’s home.

Like the WKRP of television, McIntire and his partners set out to be “irreverent.” One of their offerings is a two-hour show called “Weird Al and Friends,” focusing on the satirical works of Weird Al Yankovic.

They even had an annual Thanksgiving turkey giveaway. But don’t call the American Society for the Prevention of Cruelty to Animals — they hand out gift certificates to a local grocery store.

“We don’t toss them out of helicopters,” he said with a laugh.

This news comes hot on the heels of the decision to shutter CBS News Radio after nearly a century in operation. After more than a decade on the air, the 56-year-old McIntire decided it was time to pass the reins.

“We’re in a position where the older members like me who started the station are turning the leadership over to younger members,” he said. “They’re not interested in radio.”

They put out a call for bids to use the call letters on FM and AM radio, as well as television and digital television.

They intend to use the proceeds for a new nonprofit venture called Independent Broadcast Consultants. He said IBC will be “geared specifically toward helping these new broadcasters get up and running, get the consulting that they need in order to be, hopefully, more successful than we have been.”

Oak City Media was all set to hand off the television-related suffixes — WKRP-TV and WKRP-DT — when another group defaulted on the agreement, McIntire said. But he said the Cincinnati deal is in the bag, he just can’t legally discuss it.

“It will be radio,” he said. “But that’s all I can tell you at this time.”

Robert Thompson, who uses a season 2 episode of “WKRP” in his TV history class at Syracuse University, said it’s telling that people see real value in a fictional station whose call letters invoke the word “crap.”

“The value comes from the love of the characters for each other,” he said. “And now by buying this thing, the value comes from our love of the characters themselves.”

Whatever they do with the call sign, McIntire hopes they will be true to the show that inspired it.

“It has a special place in the hearts of an awful lot of people,” he said. “And we have been very, very, very proud to have been a steward of that legacy.”

This story has been updated to correct that the studio is on the first floor of the home, not the basement.

D.P. McIntire leans against a deck beneath the WKRP radio antenna in the backyard of his home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

D.P. McIntire leans against a deck beneath the WKRP radio antenna in the backyard of his home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

D.P. McIntire points to the transmitter for WKRP radio in a corner of his garage in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

D.P. McIntire points to the transmitter for WKRP radio in a corner of his garage in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

The WKRP radio antenna sits atop a 25-foot flagpole behind D.P. McIntire's home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

The WKRP radio antenna sits atop a 25-foot flagpole behind D.P. McIntire's home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

A photo of the cast members of the sitcom "WKRP in Cincinnati" sits in a window at the home of D.P. McIntire in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

A photo of the cast members of the sitcom "WKRP in Cincinnati" sits in a window at the home of D.P. McIntire in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

D.P. McIntire stands beneath a WKRP banner in the backyard of his home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

D.P. McIntire stands beneath a WKRP banner in the backyard of his home in Raleigh, N.C., on Thursday, April 2, 2026. (AP Photo/Allen G. Breed)

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