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CK
Hutchison said in the statement that it had begun new
arbitration proceedings against Panama and alleged that the
Central American country had breached an investment protection
treaty through “sovereign acts that targeted a decades-old ports
concession” in a “state attack campaign” on the company’s assets
in the Central American country.
Panama’s government in February seized the Balboa and Cristobal
ports, located on each end of the Panama Canal, after its
Supreme Court that a concession held by CK Hutchison’s
subsidiary to run the two ports was unconstitutional.
The two ports at each end of the Panama Canal became part of
U.S.-China tensions since Donald Trump’s return to the White
House last year after he alleged China of “running” the canal.
The Panama Canal is managed and owned by Panama. But CK
Hutchison’s subsidiary Panama Ports Company had run the two
ports on the canal from 1997 and had renewed its concession for
25 years in 2021.
Beijing and Hong Kong had hit back at Panama over its takeover
of the ports.
CK Hutchison, controlled by the family of Hong Kong’s richest
man Li Ka-shing, last year announced an initial $23 billion deal
to sell its global ports business, including the two Panama
ports, to a consortium involving U.S. investment firm BlackRock.
But the deal had made little progress under geopolitical
tensions and legal challenges among China, the U.S. and Panama.
In March, Panama Ports Company had separately sought at least $2
billion in compensation from Panama over its takeover of the
ports which it said was unlawful under international arbitration
proceedings. CK Hutchison said the actions were making progress.
CK Hutchison added that Thursday's new proceedings were focused
on its treaty rights, which were distinct from Panama Ports
Company’s contract rights in the earlier arbitration
proceedings.
In April, the subsidiary also launched arbitration proceedings
against Danish shipping and logistics group Maersk after it took
over some of its port operations in Panama. Maersk said at the
time that it did not believe it was liable for the claims.
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