Panama orders occupation of 2 key canal ports after Supreme Court ruling

The Panamanian authorities connected Monday issued a decree ordering nan business of 2 ports astatine nan entrances of nan Panama Canal, a move triggered by a last Supreme Court ruling that declared nan operating concession held by Hong Kong-based institution CK Hutchison unconstitutional.

The decree authorizes nan Panama Maritime Authority to inhabit nan ports for “reasons of urgent societal interest.” The business includes each movable spot wrong aliases extracurricular nan Balboa and Cristóbal terminals, specifically covering cranes, vehicles, machine systems and software.

The saga surrounding nan 2 Panamanian ports is portion of a broader rivalry betwixt nan United States and China, successful which nan Central American state became caught successful nan mediate aft U.S. President Donald Trump accused China past twelvemonth of “running nan Panama Canal.”

CK Hutchison was slated to waste nan 2 ports to a consortium that includes U.S. finance patient BlackRock, but this prompted swift involution from nan Chinese government, which halted nan deal.

In January, Panama’s Supreme Court struck down nan rule approving nan concession statement for Panama Ports Company, aliases PPC, a subsidiary of CK Hutchison. The ruling besides invalidated an hold granted successful 2021, stripping nan larboard operations of immoderate ineligible basis.

PPC has operated these terminals since 1997, erstwhile nan authorities awarded it nan concession to negociate nan ports located astatine nan Pacific and Atlantic entrances to nan Panama Canal.

Panama's authorities announced days agone that it will guarantee nan continuity of larboard operations and occupation stability, and that APM Terminals, a subsidiary of nan Danish group A.P. Moller-Maersk, would temporarily presume nan management of nan terminals while a caller statement is awarded.

Meanwhile, CK Hutchison Holdings started arbitration proceedings against Panama nether nan rules of nan International Chamber of Commerce. It’s unclear what nan effect of nan proceedings would beryllium and really agelong they could take. It besides threatened to writer APM Terminals, if it operates nan concession. The Danish group responded that it's not a statement to nan ineligible proceedings.

A PPC spokesperson told section media past week that nan institution was seeking an statement pinch nan Panamanian authorities to proceed operating.

___

Follow AP’s sum of Latin America and nan Caribbean astatine https://apnews.com/hub/latin-america