News / Hutchison warns APMT off as battle over Panama box terminals heats up

Port of Balboa. Photo: Dreamstime.com

CK Hutchison has warned APMT off its terminal concessions on the Panama Canal, telling Maersk’s terminal operator that any move to take control of operations at Balboa and Cristobal would result in legal action.

This latest intervention is an escalation in hostilities between CK Hutchison (CKHH) and APMT following Panama’s Supreme Court stripping Hutchison-owned Panama Ports Company (PPC) of its 2021 concessions, claiming that they were “unconstitutional”.

CKHH stressed that “any steps by APMT to assume the administration or operation of PPC ports at Balboa or Cristobal in any capacity, for any period of time, without the agreement of CKHH would cause damages to CKHH, HPH and PPC”.

Adding that any such action would “result in legal recourse against APMT and/or its affiliates involved”, CKHH appears to have put itself on the attack against not only APMT but also the Panama Maritime Authority, which appointed APMT as the terminals’ temporary operator.

“In compliance with the applicable legal processes, the government of the republic of Panama will, in due course, rely on specialised support of APM Terminals as temporary administrator during a transition period,” Panama Maritime Authority said.

When approached by The Loadstar, APMT declined to provide any comment on the warning from CKHH, instead directing The Loadstar to a previous statement in which it confirmed its willingness “to assume the temporary operation” of the two terminals.

But with the Chinese operator showing strong resolve to regain legal authority to continue its operations at Balboa and Cristobal, CKHH also stressed that it “remains fully committed” to keeping the terminals functioning as it pushes ahead with arbitration efforts.

“PPC will take all steps reasonably available to protect the employees who participate in its operations, to avoid disruptions to port operations, as well as customers and suppliers, and to facilitate the flow of vessels and cargo transiting the Panama Canal, as it always has,” it said.

Having been awarded a 25-year concession in 1997, PPC, in which CKHH holds a 90% stake, saw it renewed in 2021 for another 25 years – only to last year come under scrutiny from Panama’s comptroller general who alleged “irregularities” in the extension.

However, it has not gone unnoticed that all of this followed the return of Donald Trump to the White House and the sustained pressure campaign he has placed on Panama’s government surrounding the canal, including efforts to see it handed over to the US.

During his inaugural address, President Trump noted that “China operates the Panama Canal”. He added: “We didn’t give it to China. We gave it to Panama, and we’re bringing it back,” while Panamanian auditors were filmed at PPC’s offices.

For its part, China’s government has lambasted the decision as “absurd” and “shameful”, warned the Panamanians that they will pay a “high price” for apparently kowtowing to the US commander in chief.

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