Terminal operator CK Hutchison is stepping up its tone towards Maersk in the dispute over two terminals on the Panama Canal.
The Hong Kong operator warned in a recent press release that a takeover of operations in the two important ports of Balboa and Cristobal by the Dutch Maersk terminal subsidiary APM Terminals without approval would result in legal action and claims for damages.
The background to this is a ruling by the Supreme Court of Panama, which declared the basis of the existing concessions to be unconstitutional. Hutchison’s subsidiary Panama Ports Company has already initiated arbitration proceedings at the International Chamber of Commerce, accusing the government of an illegal forced exit and an unclear transition plan.
APM Terminals had previously signaled its intention to temporarily take over the operation of the facilities. Hutchison, on the other hand, emphasized that continued operation depends solely on decisions made by the Panamanian authorities and is not in its own hands.
“Notwithstanding these developments, CKHH reiterates its commitment to ensure that PPC takes all reasonable measures to protect employees at the terminal operations, avoid business disruptions, support customers and suppliers, and ensure the flow of ships and cargo through the Panama Canal – to the extent possible by decisions of the Supreme Court of Panama and the Panamanian government,” reads the statement from CK Hutchison Holdings Limited (CKHH).
The conflict has now also taken on political dimensions: China warned of economic consequences and increased controls on Panamanian imports.
