Panama Ports Company Files International Arbitration Against Panama

Following the ruling of the Supreme Court of Justice (CSJ), Panama Ports Company S.A. (PPC) initiated international arbitration against Panama, considering that the decision came after a campaign by the Panamanian state specifically against this company and its concession contract. The ruling of the Supreme Court of Justice (CSJ) that declares the contract unconstitutional between the Panamanian state and Panama Ports Company (PPC) was published in the Official Gazette, thus officializing the decision made by the country's highest court. According to the port company, there is no ultimatum to the Panamanian state, but the intention to resume meetings with high-ranking officials to define the transition process. In its ruling part, the CSJ decision also declares the extension and its inherent acts unconstitutional, determined through a resolution issued by the Maritime Authority of Panama (AMP) on June 23, 2021. The contract is related to the concession for the development, construction, operation, and administration of the Balboa and Cristóbal ports. President Mulino, in one of his latest statements, confirmed that the Government will maintain a strategy to sustain the operation of the ports on the canal's banks and is preparing, after this ruling is executed, to initiate a transition in the ports, seeking the best results and interest for the country through a separate port operation scheme. Amid the controversy, CK Hutchison Holdings warned that it would take legal action against Maersk if the shipping company assumes the temporary administration of the ports, as announced by the President of the Republic, José Raúl Mulino. Subsequently, CK Hutchison Holdings informed that they were willing to negotiate with the Executive before the decision became final after being published in the Official Gazette.