The former operator of container terminals at the Panama Canal threatened legal action after its contracts were voided by the country’s Supreme Court.
CK Hutchison Holdings Limited of Hong Kong (0001.HK) in a release today said that it is reviewing its options after its Panama Ports Company (PCC) subsidiary was removed as operator of terminals at Cristobal and Balboa ports near the Panama Canal.
The company had operated the terminals since 1997. The court decision earlier this month voiding the contracts comes amid a pressure campaign by President Donald Trump that alleged Chinese control of the canal threatened U.S. security.
The high court in a decision yet to be published found the operator’s concession unconstitutional under Panamanian law. The Panama Maritime Authority then selected Maersk’s (MAERSK-B.CO) APM Terminals unit as operator until a new concession could be bid.
Hutchison said it was asserting its rights under an investment protection treaty and sought discussions to resolve the dispute involving PCC, which it described as an “indirect subsidiary”.
The company called “unlawful” the court’s decision finding the law that the concessions were based on for three decades unconstitutional.
Hutchison has filed for arbitration with the International Chamber of Commerce.
“CKHH will continue to consult with its legal counsel regarding all available recourse including additional national and international legal proceedings against the Republic of Panama and its agents and third parties colluding with them in this matter.”
The company also threatened Maersk with legal action, and said a forced takeover would cause “disruption and damage”.
Read more articles by Stuart Chirls here.
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