Reading compressed file and writing compressed files

SnapLogic has the ability to read and write zipped files, under the covers using the standard Java zip classes. Those classes don’t support the use of password protection. If you need to compress/decompress password protected zip files, you will need to use some other utility.
If you have the java libraries which support password protected files, you could use the script Snap to use those classes in the Jython implementation. You could also use the Script snap (on a Groundplex) to use a third party utility at the command line.