CK Hutchison warns Maersk's APM Terminals of legal action if it takes over Balboa and Cristobal ports after a Supreme Court ruling in Panama.
Hong Kong's CK Hutchison has threatened legal action against Maersk's APM Terminals if it assumes operations at Balboa and Cristobal ports following a Panama Supreme Court ruling, reports Seatrade Maritime News.
Panama's Supreme Court ruled unconstitutional the law underpinning concessions for Hutchison's Panama Ports Company. Authorities stated that APM Terminals would temporarily take over operations; however, Hutchison warned that any assumption of control without its consent would result in damages.
The company indicated that it had notified the Maersk Group of potential recourse and cautioned third parties against colluding in unlawful actions. Hutchison described the court's decision as unlawful and has initiated arbitration proceedings while invoking protections under an investment treaty.
Hutchison asserted that Panama had taken steps toward a forced exit of PPC without providing clarity on operational plans. It claimed that the company had been subjected to a year-long campaign by the Panamanian state targeting its concessions.
Hutchison added that if the ruling is published and enforced, PPC's operations at Balboa and Cristobal would become impossible. It stated that the continued operation of the ports now depends solely on the actions of Panama's Supreme Court and government.
