Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, has initiated arbitration proceedings against Danish shipping giant A.P. Moller-Maersk following the controversial takeover of key port terminals in Panama.
The legal action stems from the recent removal of PPC from operating the Balboa and Cristóbal ports, located at either end of the strategic Panama Canal. PPC alleges that Maersk breached a long-standing contractual agreement by aligning with the Panamanian government in a move that led to PPC’s displacement and the installation of new operators linked to Maersk.
According to PPC, the agreement required exclusive use of its terminal infrastructure and access to its operational systems. The company claims that Maersk’s actions undermined this arrangement and facilitated a state-led campaign to replace PPC’s operations.
The dispute follows a ruling by Panama’s Supreme Court earlier this year, which invalidated the legal framework underpinning PPC’s concession to operate the ports. Subsequently, Panamanian authorities assumed control of the terminals and awarded temporary operating rights to subsidiaries of Maersk and Mediterranean Shipping Company (MSC).
PPC has stated that the arbitration—set to take place in London—is separate from its ongoing legal proceedings against the Panamanian government, where it is seeking damages exceeding $2 billion over what it describes as an unlawful takeover.
The case adds another layer of complexity to an already high-profile dispute involving global port assets, geopolitical tensions, and the future ownership of key infrastructure along one of the world’s busiest maritime trade routes.