Hong ?Kong's CK Hutchison said on Thursday it has ?notified Panama of an investment-protection treaty dispute after A.P. Moller-Maersk has indicated that it is willing to temporarily take over the management of 'the Balboa and Cristobal terminals.

Panama's Supreme Court has annulled Panama Ports Company S.A., a subsidiary of CK Hutchison.

in late January

CK may have to reconsider its plans to sell certain terminals if the ownership of some Panama Canal operations is unclear.

APM Terminals Panama (a Maersk subsidiary) said late in January that it would be willing to temporarily operate the Balboa & Cristobal Terminals to avoid any impact on global?and regional trade.

CK Hutchison stated that a takeover of APM Terminals would lead to legal action against the company unless it is agreed upon with them.

CK Hutchison stated in a?statement that Panama 'has not provided clear assurances regarding PPC's continuing operations at Balboa & Cristobal and is still moving towards a forced shut down or takeover that worsens disruption and harm.

PPC, a private company, has been operating container terminals at the Pacific and Atlantic entrances of the canal since the 1990s.

About two-thirds (?) of all transiting cargo is bound for or originates in North America.

Hong Kong's?conglomerate said that PPC will be unable to continue operating terminals in the two ports if the Panama Supreme Court ruling is published. The ruling has not yet come into effect.

The port contracts also cast doubt on billionaire Li 'Ka-shing owned CK Hutchison’s planned $23??billion deal to sale its global ports business including the Panama Terminals to a consortium headed by U.S. asset management firm BlackRock. Reporting by Shivangi lahiri from Bengaluru, editing by Mrigank dhaniwala and Ronojoy Mazumdar

(source: Reuters)