Hutchison Files Notice of Dispute with Panama and Warns AMP of Legal Action
CK Hutchison took further steps to protect its concession and investments in Panama, issuing a strongly worded statement invoking further legal actions. It asserts that the ongoing operation of the terminals at the Panama Canal “depends solely” on the actions of Panama.
The company continues to act in advance of the publication of the decision by the Supreme Court, which is reported to have ruled that the law establishing the concession for the terminals is unconstitutional. It continues to call the Panama court decision “unlawful,” highlighting that the law was in place for nearly 30 years to create the concession to operate the terminals in Balboa and Cristobal.
While the court decision is yet to come into force, CK Hutchison asserts Panama has “advanced steps toward a forced exit” and the transition of the port sector, “with no clarity as to operational plans.”
The company reports it filed a notice of dispute with Panama pursuant to an “investment protection treaty,” saying it was seeking to protect its rights and interests. This is in addition to the company reporting last week that it was seeking arbitration under the Rules of Arbitration of the International Chamber of Commerce.
Hutchison Port Holdings Ltd. also reports that it notified AP Moller – Maerk that any steps by APM Terminals to assume the administration of the ports at Balboa and Cristobal without its consent would cause damages to the company. It warned it would seek legal recourse.
APM had indicated its willingness to temporarily oversee the operations after the announcement of the court’s decision. The government of Panama had suggested that APM become a temporary operator of the terminals until a new concession could be tendered. APM was quick to point out that it is not a party to the current legal dispute and had only expressed its willingness in response to the government.
Hutchison asserts that as the government continues to push toward a forced stoppage or takeover, the court ruling could make the continued operation of the terminals impossible. In addition to warning APM, it also said other third parties were “warned against colluding in any unlawful action.”
The Chinese and Hong Kong governments have been critical of the court decision and the actions of Panama, with reports that they have told other companies to suspend investments in Panama. It has blamed the U.S. for political pressure after Donald Trump repeatedly said, “China runs that Panama Canal,” and threatened to take it back. Trump continues his campaign against China, recently saying Peru would lose its sovereignty if it continues to let China run the Chancay Port, which COSCO built and opened in November 2024.
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CK Hutchison said it has “invited consultations” with Panama in an effort to resolve the steps taken by Panama and the court. It said it will continue to consult legal counsel regarding both national and international legal recourse. It says it is also committed to ensuring that steps are taken to protect the employees of the Panama Ports Company and to avoid disruptions to port operations in Panama.
The government has said it intends to conduct a new tender for the concession of the terminals at each side of the Panama Canal. Further, it said the operations of the terminals would be separated so that one company could no longer control the two ports. Panama has already started a separate tender for the construction of new terminals, which would further create competition and expand container handling capacity.