A subsidiary of Hong Kong conglomerate CK Hutchison said on Tuesday it had filed for arbitration against shipping giant Maersk, accusing the Danish group of seeking to replace its Panama Canal operations.
The Panama Ports Company said in a statement that Maersk breached a contract by siding with Panamanian authorities in a dispute over the waterway that saw a court in January cancel PPC’s rights to manage two key ports.
“Maersk undermined the contract and aligned itself with the Republic of Panama regarding its state campaign against PPC and the scheme to replace it through a takeover that installed new port operators,” the company said.
The arbitration will be held in London, PPC said, adding that the claim against Maersk is separate from “ongoing steps by PPC to hold Panama to account for its conduct against the contract and against investors”.
PPC said that since the takeover in January, a port operator affiliated with Maersk has used PPC’s facilities and information under a “default concession agreement” to manage the Balboa terminal.
Panama declared in February that a Maersk subsidiary, APM Terminals, would operate the port of Balboa and that Terminal Investment Limited, owned by logistics giant MSC, would manage the port of Cristobal.
PPC filed a lawsuit challenging the suspension of Panama Canal operations in February and announced a month later that it was seeking at least $2 billion in damages.
Panama is embroiled in wider tensions between the United States and China, with President Donald Trump last year claiming, without evidence, that China effectively runs the canal.
The United States last week repeated accusations that China had detained Panamanian-flagged ships in response to the seizure of key ports — claims Beijing said were fabricated.
The Panama Canal, which connects the Atlantic and Pacific oceans, handles about 40 percent of US container traffic and five percent of world trade.
