Overview
- Panama’s Supreme Court last week annulled the Panama Ports Company concession for Balboa and Cristóbal as unconstitutional, citing exclusive privileges and tax exemptions following a comptroller challenge that also alleged $1.2 billion in unpaid sums.
- CK Hutchison said its unit has initiated proceedings under International Chamber of Commerce rules and is seeking damages over the loss of the long-running concession.
- Panama moved to keep operations steady by tapping Maersk’s APM Terminals to run the two facilities on an interim basis until a new concession is arranged.
- China condemned the ruling and warned Panama of a “heavy price,” U.S. officials welcomed the decision, and President José Raúl Mulino defended the judiciary’s independence.
- Analysts say the arbitration could take years with uncertain enforcement, and the case puts CK Hutchison’s roughly $23 billion ports sale to a BlackRock–MSC-led consortium under renewed scrutiny.