CK Hutchison’s Panama unit says state missed arbitration response deadline

PANAMA CITY – Panama Ports Company (PPC), a unit of Hong Kong conglomerate CK Hutchison, said on March 16 that the Panamanian government failed to file its response by the March 13 deadline in an international arbitration brought by the company.

PPC said the deadline was set by the International Court of Arbitration of the International Chamber of Commerce (ICC) and that Panama sought a partial extension, saying it was not ready to respond because it had not hired lawyers and needed time to prepare.

Panama’s government has moved to unwind the concession agreements that gave PPC control of the Balboa and Cristobal ports, following a court ruling that the authorities said rendered the contracts unconstitutional.

PPC also accused Panamanian authorities of continuing to hold investor documents it says were improperly confiscated, and of denying it access to its own files and computers.

PPC said materials were taken at the ports and from a private document storage facility, alleging officials arrived without notice and accompanied by armed security forces.

“Panama continues to disregard the rule of law,” PPC said, accusing the state of tolerating the “occupation, trespassing and confiscation” of PPC facilities and property and of disrupting port operations and suppliers, including Panamanian companies.

Panama’s maritime authority and the presidential office did not immediately reply to requests for comment.

On March 13, PPC said it was continuing to coordinate with suppliers after Panama cancelled its contracts for the Balboa and Cristobal ports.

That same day, Panama’s government said it hoped China’s COSCO Shipping would reconsider its decision not to use Balboa after COSCO notified clients that it had suspended operations at the port. REUTERS