Hong Kong conglomerate CK Hutchison has started arbitration against A.P. Moeller-Maersk after Panama seized its port assets in the country, skriver Dow Jones.
The move escalates a dispute that began in January, when a Panamanian court voided CK Hutchison’s contracts to run two terminals at either end of the Panama Canal. The company, founded by Hong Kong billionaire Li Ka-shing, has also filed claims against the Panamanian government.
In a statement Tuesday, Hutchison unit Panama Ports Co. said it had filed the arbitration against Maersk, accusing it of undermining a long-term contract.
The unit said Maersk is “aligned with the Republic of Panama” in a campaign against it and a plan to replace it “through a takeover that installed new port operators.”