The Tamesis
Panama has canceled a more than two decades-old port contract with a subsidiary of Hong Kong-based CK Hutchison Holdings Ltd. and transferred operations to two European shipping companies under temporary arrangements.
This move follows Supreme Court ruling Last month in Panama, concessions for the Cristobal and Balboa port terminals near the canal were unconstitutional.
According to a report, temporary operations have been transferred to Switzerland-based Mediterranean Shipping Company (MSC) and Danish shipping giant Maersk (AP Moller-Maersk) CNBC.
See also: China imposes export restrictions on 40 Japanese companies as dispute intensifies
The Panamanian government announced in a notice in the Official Gazette on Monday that it would control the port facilities through a decree aimed at ensuring that operations are not disrupted until a new concession is granted within 18 months.
Maersk’s subsidiary APM Terminals will operate the Port of Balboa on the Pacific side of the canal, while MSC’s Terminal Investment will operate the Port of Cristobel on the Atlantic side of the canal.
Maersk said it will deploy new operating systems to operate the Cristobel port and train local workers, CNBC reported.
CK Hutchison was not satisfied with the court ruling, calling the government administrative degree “illegal” and would consult legal counsel on the transfer.
Earlier this month, Hutchison Whampoa launched arbitration hearing The company has reportedly warned Maersk and its subsidiaries that they may face legal challenges over the acquisition.
Hutchison Whampoa shares fell 2.6% on Tuesday.
Fierce geopolitical competition
The port dispute is part of a fierce geopolitical rivalry between the United States and China.
US President Donald Trump claimed last year that China was “operating the Panama Canal” but nice to hear A consortium led by BlackRock and MSC struck a deal worth $23 billion to buy more than 40 ports from Hutchison.
However, China strongly opposes the agreement Calls for state-owned shipping giant COSCO Group to acquire major stake Acquisition of the remaining 41 ports that Hutchison Whampoa has agreed to sell.
Beijing warned earlier this month that the small Central American country would “pay a heavy price politically and economically”.
However, the White House is reportedly happy with the new arrangement because it views China’s actions on both sides of the strategic waterway as posing a serious threat to the vital economic lifeline, given that Beijing often exerts strong economic coercion in trade disputes.
Rhodium Group and other analysts said the U.S. retained significant leverage Through a treaty with Panama that would enable it to defend any intervention on national security grounds.
But this may be just the first of many “port wars” as the United States strongly opposes China’s port wars. “Predatory control” The Peruvian port of Chancay, and its alleged hopes Dominate global trade.
See also:
China exploits Trump’s ‘uncertainty’ to dominate global trade, report says
China slams Panama port ruling, Hutchison Whampoa files new lawsuit
Supreme Court revokes Hong Kong company’s Panama port concession
Iranian ‘ghost tanker’ delivers jet fuel to Myanmar air force
COSCO’s demands ‘could block BlackRock’s $23 billion takeover of Hutchison Ports’
Changhe Port deal mired in US-China trade war
China threatens to block Panamanian port deal, “hopes to gain COSCO shares”
China warns CK Hutchison, BlackRock: be cautious about port deals
Clouds cloud over Panama port trade: China slams Hong Kong shipowners for sell-off
China, CK Hutchison ‘seeking solutions to $23 billion port deal’
Trump praises BlackRock’s $23 billion acquisition of Hong Kong’s giant port
US investigation shows China unfairly dominates shipbuilding industry: sources
