Panama Ports Company (PPC) is seeking “extensive damages” after launching arbitration proceedings against the government of Panama following the decision of the country’s Supreme Court last week to void the company’s concessions to operate the Cristobal and Balboa ports. PPC had held the concessions for 28 years.
The port company, 90% controlled by Hutchison Port Holdings, a subsidiary of Hong Kong-listed conglomerate CK Hutchison, said Wednesday the Panamanian government has already started to take control of the terminals that bookend the Panama Canal even though the court decision has yet to be published and finalized.
“The steps taken by the state have included unexpected site visits and instructions that PPC provide unrestricted access to physical, commercial, and intellectual property and information, as well as to employees, on the basis that the state is systematizing and executing a port transition plan through coordinated actions of state authorities,” PPC said in a statement.
APM Terminals (AMPT), which was appointed by the Panama Maritime Authority as interim administrator of the two terminals a day after the court’s decision, would not comment on whether it had taken part in the site visits or other actions following the court ruling.
“At this moment, we have no further comments to share other than what we have released on our website,” an APMT spokesperson said. “For any next steps we refer to the relevant authorities in Panama.”
CK Hutchison on Wednesday said it “continues to consult with its legal counsel and reserves all rights, including recourse to additional national and international legal proceedings.”
Details please refer to the JOC news.
Source: JOC