The Panama Canal is no longer for one operator. “Never again”

Panamanian President Jose Raul Mulino said on Thursday that the concession to operate the two ports, which for almost three decades had been managed by Hong Kong company CK Hutchison Holdings, would “never again” be awarded to a single company.

Last week, the Supreme Court of Panama invalidated CK Hutchison's contract to operate, through its subsidiary Panama Ports Company, two ports along the Panama Canal. The court ruled that the agreement, granting the company exclusive privileges and tax exemptions, violated the country's constitution.

– I don't expect this situation to escalate. Panama is a dignified country and will not allow itself to be threatened by any country in the world, Mulino said, calling the court's decision final.

China on Tuesday warned Panama it would pay a “heavy price” for the court's ruling, which China's Hong Kong and Macau Affairs Office called “preposterous” and “shameful and pathetic.” They announced that they would defend the interests of Chinese companies.

Mulino added that it was unclear when the ruling would be implemented, but clarified that until then, Panama Ports Company would continue to operate both ports. – The Panamanian state will decide on granting the concession much later – he added.

On Wednesday, CK Hutchison announced that its Panama Ports Company had initiated international arbitration proceedings against Panama that could take years to resolve. The decision to initiate arbitration proceedings raises further doubts about the future ownership of the two ports and the company's planned sale of port operations worth $23 billion. (PAP)

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