Panama Ports Company, S.A. (PPC) has initiated arbitration proceedings against Maersk, alleging that the shipping company had taken control of its terminals near the Panama Canal and breached a long-term contract.
The Port of Balboa 🏗️, formerly part of the concession held by PPC, part of Hong-Kong based CK Hutchison, is currently managed by APM Terminals, part of A.P. Moller – Maersk. The Panamanian authorities ordered the takeover of the Balboa and Cristobal terminals in February, after Panama’s Supreme Court of Justice ruled the PPC concession unconstitutional.
In a press statement released April 7th, PPC stated the cancelled arrangement was founded on an exclusive long-term partnership covering the use of its port operations, together with access to its facilities and operational data.
The company alleged that Maersk undermined the agreement and coordinated with Panamanian authorities as part of what PPC described as a state-backed campaign against the company. PPC further claimed this process was intended to take over the Balboa terminal on the Pacific side and the Cristóbal terminal on the Atlantic side by putting new operators in place of PPC.
⚖️ The arbitration will take place in London and is separate to international arbitration proceedings Hutchison has already brought against the Republic of Panama with claims of over $2 billion over what it sees the “unlawful” takeover of the terminals.
On April 8th, Maersk reacted that it does not consider itself responsible for the claims filed by the port company and that it will address them in the appropriate forum.
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