CK Hutchison’s Panama Ports Co has escalated its legal fight over Panama’s terminal concessions by launching arbitration proceedings against Maersk.
The dispute centres on Balboa terminal, where Maersk’s ports arm, APM Terminals, was appointed temporary operator after Panamanian authorities moved to take control of the site earlier this year.
The conflict dates back to a decision by Panama’s Supreme Court at the end of January, which found the concessions held by Panama Ports Co for the Balboa and Cristobal container terminals to be unconstitutional. Following that ruling, the Panamanian government assumed control of the terminals in February.
Temporary operation of Balboa was handed to APM Terminals, while MSC’s Terminal Investment Ltd took over Cristobal.
Hutchison had previously warned that it would take legal action against Maersk if it stepped into either terminal, and it has now acted on that threat.
According to Panama Ports Co, the arbitration claim relates to the exclusive use of its port operations in Panama and access to a range of operational facilities and information linked to those activities. The company alleges that Maersk acted against the terms of the contract by aligning itself with the Panamanian state during what Hutchison describes as a campaign to replace it as terminal operator.
The arbitration proceedings will be heard in London and are separate from the international arbitration case Hutchison has already filed against the Republic of Panama itself. In that broader dispute, the group is seeking more than $2bn in claims over what it says was the unlawful seizure of the terminals.
The case marks the latest chapter in a high-stakes legal confrontation that now spans both state action and private sector involvement, with wider implications for terminal concessions, operator rights and political risk in strategic port infrastructure.
