Panama port company officially initiates arbitration proceedings against Maersk

CK Hutchison (00001) said its subsidiary, Panama Ports Company (PPC), has formally initiated arbitration proceedings against Maersk regarding events following the takeover of Panama Ports Company’s container terminal business.

The arbitration proceedings are based on a long-term contract that provides for an exclusive operating arrangement for Panama Ports Company’s container terminal operations in Panama, and facilitates both parties’ joint development of the business through a range of Panama Ports Company operational facilities and data.

However, Maersk breached the contract and aligned itself with the Republic of Panama, supporting the government’s national action against Panama Ports Company. By arranging for a new terminal operator to carry out the takeover, Maersk sought to replace Panama Ports Company. What has long drawn criticism is that on February 23, 2026, the Panama government, through extreme administrative measures, forcibly expelled Panama Ports Company and excluded it from container terminal operations. It then forcibly took over the container terminal, and for the Balboa Port container terminal, signed a pre-arranged concession agreement with a new terminal operator affiliated with Maersk and that had already used Panama Ports Company’s operational facilities and data.

The arbitration proceedings Maersk has been initiated will take place in London. The claims brought by Panama Ports Company against Maersk are independent of, and do not affect, Panama Ports Company’s ongoing pursuit against the Panama government for its breach of contract and damage to investors’ rights and interests. Panama Ports Company will actively pursue arbitration proceedings to seek compensation from Maersk, as well as claims against the Panama government, while reserving all other rights and remedies.