The Panamanian president, Jose Raul Mulino, said 'on Thursday' that the concession contracts for operating?two ports operated by Hong Kong-based CK Hutchison Holdings over a period of nearly?three _decades would "never" be given to a single firm.

The Panama Supreme Court nullified CK Hutchison’s contract last week to operate two strategic ports along the canal via its Panama Ports Company subsidiary. It ruled that the contracts were in violation of the Central American nation’s constitution because they gave the company 'exclusive privileges' and tax exemptions.

Mulino, who called the court's ruling definitive, said: "I do not expect this situation will escalate." "Panama will not be threatened by any nation on Earth. It is a dignity country." China warned Panama on Tuesday that it would pay "heavy" prices for the court decision, which China's Hong Kong & Macau Affairs Office described as "absurd", "shameful" and "pathetic." They promised to protect the interests of Chinese firms.

Mulino said that it is unclear when the decision will be implemented. He said that the Panama Ports Company will continue to operate both of these ports in the meantime.

He added that "the Panamanian state will decide?on the scheme of concessions to be awarded much later." On Wednesday, CK Hutchison announced that its Panama Ports Company had initiated international arbitration proceedings against Panama in a 'case which could take years to settle.

The decision to go to arbitration and move further to seek arbitration has cast doubt on the ownership of the two ports, and the planned $23 billion sale by the company.

(source: Reuters)