Overview
- Panama Ports Company filed for international arbitration under International Chamber of Commerce rules and did not disclose the compensation it will seek.
- Panama's Supreme Court struck down the concession last week, citing disproportionate advantages for the operator, after comptroller audits alleged $1.2 billion was owed to the state.
- APM Terminals, a Maersk unit, signaled readiness to provide temporary oversight to keep the Balboa and Cristóbal terminals running, and Panama's president pledged no disruption to operations.
- Beijing condemned the ruling as groundless and warned Panama it would face political and economic consequences if it adheres to the decision.
- The dispute adds uncertainty to CK Hutchison's proposed sale of its global port assets to a BlackRock-led consortium, a transaction valued at about $22.8 billion.