Hutchison threatens APM Terminals with legal action over Panama port dispute

Last week, the Hutchison Port Holdings (HPH) arm of Hong Kong-based CK Hutchison Holdings(CKHH) notified A.P. Moller – Maersk A/S that it would take legal action if the latter’s  APM Terminals (APMT)  or any other of its affiliates assumed administration or operation of its subsidiary Panama Port Company’s (PPC) ports at Balboa or Cristobal. Doing so in any capacity for any period of time without the agreement of CKHH will cause damages to CKHH, HPH and PPC and result in legal recourse against APMT and/or its affiliates involved, it said.
  

Third parties were also warned against colluding in any unlawful action relating to the operation of the two terminals.

The move followed the decision by the Panama Maritime Authority to annul PPC’s operation concession of the ports at Balboa and Cristobal after 28 years of operation and relay instead on APMT as a temporary administrator of the PPC’s terminals. APMT also announced its willingness to assume the temporary operation of the two ports.

Notwithstanding these developments, CKHH says it remains fully committed to ensuring that 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, provided that the actions of the Panama Supreme Court and the Panamanian State permit.
  


CKHH adds that the Panamanian State has given PPC no assurances or clarity regarding PPC’s operations at the ports of Balboa and Cristobal and continues to push toward a forced stoppage or takeover of PPC’s operations, causing further disruption and damage.  If the publication of the Ruling results in the termination of PPC’s concession, the immediate result would be to render PPC’s operation of its terminals at the ports of Balboa and Cristobal impossible.  Accordingly, at this stage, continued operation of the ports depends solely on actions of the Panama Supreme Court and the Panamanian State, which actions are of course wholly outside the control of CKHH, HPH and PPC.