Panama Ports Company SA (PPC), a subsidiary of the Hong Kong-based conglomerate CK Hutchison [15], commenced [12] arbitration proceedings against Danish shipping firm Maersk A/S [16] on April 7 over the planned takeover by Maersk of PPC's port terminals in Panama.
The arbitration, to commence in London later this month, is to resolve a dispute involving a 25-year contract granted in 2021 for "the exclusive use of PPC port terminal operations in Panama and access to a range of PPC operational facilities and information."
PPC's press release portrayed improprer collusion between Maersk and the Panamanian government in the contract breach:
Maersk undermined the contract and aligned with the Republic of Panama in connection with its State campaign against PPC and scheme to replace it through a takeover that installed new port operators. It is already notorious that, on 23 February 2026, Panama expelled PPC from port operations through extreme executive measures, took over the port terminals, and entered into a pre-arranged concession contract for the Balboa terminal with a new operator that is affiliated with Maersk and has utilized PPC operational facilities and information.
In January, Panama's Supreme Court ruled that the concession allowing the PPC to control and operate the Balboa and Cristóbal ports was unconstitutional [13]. As a result of the ruling, Panama's central government seized control of both ports, much to the dismay of China.
The PPC says its claim against Maersk is "distinct from" and "without prejudice to" other ongoing legal steps it is taking to hold Panama accountable for its "anti-contract and anti-investor conduct."
"PPC will vigorously pursue its claims in the Maersk arbitration and its claims against Panama, as well as other rights and remedies," the press release read.
Maersk said in a statement [17] that it does not believe it is liable for the claims and will address them "in the appropriate forum," without elaborating. There was no immediate comment from Panama's government.
Initial proceedings against Panama commenced [18] in February. In late March, the PPC expanded its claims and is now seeking more than $2 billion in damages.
The Chinese government is meanwhile said to be interfering in CK Hutchison's plans to sell the majority of the dozen ports it owns, including both ports in Panama, to a consortium of buyers, including US investment firm BlackRock, in a $23 billion deal.
The administration of US President Donald Trump has "made blocking China's influence over the Panama Canal one of its top priorities,” according to an NBC [13] report.
From JURIST [19], April 9. Used with permission.
