Panama Ports Company (PPC), a subsidiary of Hong Kong conglomerate CK Hutchison, said the Panamanian government failed to meet a key deadline in an international arbitration case tied to control of major ports in the country. The development was first reported by Reuters.
According to PPC, Panama did not submit its response by the March 13 deadline set by the International Court of Arbitration of the International Chamber of Commerce (ICC). The government had requested a partial extension, citing the need for more time to hire legal counsel and prepare its case.
Dispute centers on port concessions
The arbitration stems from Panama’s move to unwind concession agreements that granted PPC control over the Balboa and Cristobal ports.
Authorities took that step after a court ruling that, according to the government, deemed the contracts unconstitutional. The ports are strategically important assets for trade and logistics in the region.
PPC has challenged the decision through international arbitration, arguing that Panama’s actions violate its rights under the concession agreements.
Company alleges document seizures and disruption
The company also accused Panamanian authorities of continuing to hold documents it says were improperly seized during recent searches.
PPC said officials took materials from port facilities and a private storage site, allegedly without prior notice and accompanied by armed security forces. It added that it has been denied access to its own files and computer systems.
“Panama continues to disregard the rule of law,” PPC said in a statement, claiming the actions have disrupted operations and affected suppliers, including local companies.
Panama’s maritime authority and the presidential office did not immediately respond to requests for comment.
Broader impact on port operations
The dispute has already begun to affect business activity.
PPC said it is working with suppliers after the government canceled its port contracts. Meanwhile, Panama has indicated it hopes China’s COSCO Shipping will reconsider its decision to suspend operations at the Balboa port after notifying clients of the move.
The outcome of the arbitration could have significant implications for foreign investment and infrastructure concessions in Panama, particularly in sectors involving strategic assets such as ports.
