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CK Hutchison Threatens Legal Action as Panama Prepares APM Terminals to Run Canal Ports

Arbitration looms as Panama seeks to keep cargo moving during a court-ordered transition.

Overview

  • CK Hutchison warned A.P. Moller-Maersk that any move to operate the Balboa and Cristóbal ports without its consent would trigger legal action.
  • Panama’s Supreme Court in late January voided the 1997 concession and its 2021 renewal that allowed CK Hutchison’s Panama Ports Company to run the two terminals.
  • Panamanian authorities said PPC will continue until the ruling is executable, after which APM Terminals Panama has been designated to take over on a temporary basis.
  • APM Terminals stated it is not a party to the legal disputes and reiterated its readiness to operate temporarily to safeguard essential trade services.
  • CK Hutchison has initiated arbitration and notified Panama of a dispute under an investment protection treaty, while the canal authority has launched a $2.6 billion tender for new Telfers and Corozal terminals.