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Arbitration · Geopolitics · Logistics · Port Operations
CK Hutchison's subsidiary, Panama Ports Company, initiated arbitration proceedings against Maersk A/S in London, accusing Maersk of aligning with Panama in a scheme to take over its port operations at the critical Panama Canal, paving the way for a Maersk-affiliated operator.
Panama's government seized control of the Balboa and Cristobal ports in February after its Supreme Court declared the concession unconstitutional, subsequently allowing subsidiaries of Maersk and Mediterranean Shipping Company to take over operations. Panama Ports Company had already started arbitration against Panama in February, expanding its claims to over $2 billion in damages by late March.
This new claim against Maersk is separate from the ongoing dispute with Panama. These legal actions complicate CK Hutchison's initial $23 billion plan to sell its global ports, including the Panama facilities, to a consortium involving U.S. investment firm BlackRock, a deal that had pleased U.S. President Donald Trump but angered Beijing, leading to a China antitrust review.
The parties are now exploring adding a Chinese investor to the consortium.
