Panama rejects CK Hutchison's accusations in the dispute over the annulment of its canal terminal concession, asserting legal readiness and cooperation.
Panama has dismissed accusations from CK Hutchison and its Panama Ports Company as 'outrageous' in the escalating dispute over the annulment of the Chinese firm's concession to operate terminals at the Panama Canal, reports Fort Lauderdale's Maritime Executive.
President Jose Raul Mulino told reporters that the claims alleging Panama missed arbitration deadlines and lacked international lawyers were false. He stated that Panama has appointed counsel to defend against PPC's demand for at least US$2 billion in damages.
Panama took back the Balboa and Cristobal terminals in February after the Supreme Court ruled the 1997 concession and its 2021 renewal unconstitutional. Officials indicated that irregularities cost the state up to $1.2 billion in lost revenue. Hutchison claimed it invested $1.7 billion in the facilities.
Panama awarded temporary contracts to APM Terminals and MSC's Terminal Investment Limited, asserting that both ports are operating normally at capacity. President Mulino accused PPC of refusing to cooperate and obstructing transactions, while Hutchison vowed to pursue all legal avenues.
China has reportedly retaliated by warning firms against doing business with Panama, ordering inspections of Chinese-flagged ships, and suspending COSCO operations at Balboa. The United States welcomed Panama's move, with President Donald Trump last year calling for action to prevent China from running the canal.
