CK Hutchison Holdings Limited (CKHH) has formally warned A.P. Moller–Maersk A/S that any move by APM Terminals (APMT) to assume control of two Panama port terminals without its consent would trigger legal action and claims for damages.
The warning comes as part of a widening dispute between CKHH and the Republic of Panama over the future of Panama Ports Company S.A. (PPC), an indirect subsidiary of CKHH that operates the ports of Balboa and Cristóbal.
According to the company, Hutchison Port Holdings Limited (HPH) notified A.P. Moller–Maersk A/S on February 10, 2026, that any steps by APMT or its affiliates to assume administration or operation of PPC’s terminals, in any capacity and for any duration, without CKHH’s agreement would cause damages to CKHH, HPH and PPC, and would result in legal recourse against APMT and/or the entities involved.
The move follows announcements on January 30, 2026, by the Panama Maritime Authority indicating it would rely on APM Terminals as a temporary administrator for PPC’s terminals at Balboa and Cristóbal as part of a transition plan. APMT confirmed the same day its willingness to assume temporary operations.
Treaty dispute initiated
Separately, CKHH has notified the Republic of Panama of a dispute under an investment protection treaty, seeking consultations over measures taken by the Panamanian State that it says have negatively affected CKHH and PPC.
The dispute stems from cumulative actions by Panama, including a January 29, 2026 announcement by the Judicial Branch that the Supreme Court of Justice of Panama had determined Law No. 5 of January 16, 1997 to be unconstitutional. Law No. 5 has formed the legal basis of PPC’s concession contract and operations at the ports for nearly three decades.
CKHH argues that any determination declaring the law unconstitutional would be unlawful. Although the ruling has yet to be published or enter into force, the company said the Panamanian State has already advanced steps toward what it describes as a forced exit of PPC and a transition of the port sector, without providing operational clarity.
Legal options under review
In addition to the treaty notification, PPC commenced arbitration on February 3, 2026 under the terms of its concession contract. CKHH stated it will continue consulting legal counsel regarding all available national and international remedies against the Republic of Panama, its agents and any third parties it alleges are colluding in the matter.
Despite the escalating dispute, CKHH said it remains committed to supporting PPC in protecting employees, avoiding operational disruptions and facilitating vessel and cargo flows through the Panama Canal, provided that actions by the Panama Supreme Court and the Panamanian State allow operations to continue.
The company warned that if publication of the Supreme Court ruling results in termination of PPC’s concession, operations at the Balboa and Cristóbal terminals would become impossible. At this stage, CKHH said continued port operations depend entirely on decisions by the Panamanian authorities, which are outside the control of CKHH, HPH and PPC.
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