US EditionImplications of Panama court ruling to quash CK Hutchison port concessions
- On January 29, Panama's Supreme Court annulled Panama Ports Company, a CK Hutchison subsidiary, concession to operate Balboa and Cristóbal ports, held since the 1990s.
- Citing constitutional violations, judges found the 1997 concession and its extensions breached equality before the law, free competition, and primacy of the public interest, criticising the automatic 25-year renewal and de facto monopoly clauses affecting PPC.
- The decision jeopardizes CK Hutchison's proposed US$23 billion sale of 43 ports to a consortium led by BlackRock and Mediterranean Shipping Company, with Balboa and Cristóbal handling 3.88mn TEUs and 39.2% of container traffic.
- China warned Panama of `heavy prices` and the Hong Kong and Macau Affairs Office called the ruling `absurd`, while U.S. officials praised it as a `win for America'.
- Legal experts say CK Hutchison Holdings faces limited remedies in Panama and may sue abroad or parcel assets, with APM Terminals and Maersk as temporary operators while PPC runs ports until ruling finalizes.
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44 Articles
By KANIS LEUNG HONG KONG (AP) — Hong Kong, CK Hutchison Holdings said Wednesday that its subsidiary has initiated arbitration proceedings against Panama after Panama’s Supreme Court ruled that a concession for the subsidiary to operate the Panama Canal ports was unconstitutional. Hutchison expressed its strong disagreement with last week’s ruling, and China warned that Panama would pay “a heavy price” if it persisted. Panama’s president has assu…
Hong Kong Free Press
CK Hutchison begins arbitration against Panama over annulled canal contract
Hong Kong-based conglomerate CK Hutchison said in a statement Tuesday it has initiated international arbitration against Panama, after a ruling by the country's top court annulled a concession allowing it to operate ports at the Panama Canal.
China threatens Panama with a "high price" after the cancellation of the port agreement of CK Hutchison. Two ports on the Panama Canal thus become a focal point in the power struggle between Beijing and Washington.
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