Mediterranean Shipping Company (MSC) has written to Panama Maritime Authority (AMP) director, Noriel Arauz, complaining about unprofessionalism and obstructive behaviour from Panama Ports Company (PPC).
PPC, a unit of Hutchison Ports, oversees operations in Balboa and Cristobal ports in Panama.
In the letter, MSC wrote, “Since 22 January 2022, we have experienced unprofessional attitudes and coercive actions of the concessionaire PPC, the company in charge of the operation in the port of Balboa and Cristobal.
“First of all, PPC began to refuse the entry of companies that have been providing auxiliary services to our refrigerated containers in Panama for more than nine years with very confusing arguments, PPC tells us that Harbor Shipping Corporation (HSC) does not have the permits to provide services in Panama, a situation that we do not understand because we have seen all the permits, and also a letter from you instructing PPC to give HSC immediate access to our containers. However, they still refuse to do so. Almost every day, we witness how PPC is restricting the entry of specialised equipment assigned to our containers, even when they are accompanied by AMP inspectors, a situation that is very strange for us.”
MSC went on to allege that PPC had requested the Swiss-Italian liner giant to assign the aforementioned services to two companies (Serviestiba and Chapiaire) which are not known to MSC.
“These are companies we have not certified and do not trust in the safety and security of our equipment and goods. As a user of the Panama hub, we feel that we have been extorted to accept this situation,” MSC wrote.
“The situation is getting complicated to the point that we don’t know when our reefer containers have an alarm to monitor them and properly track the malfunction. It is no secret that in today’s world, secure trade is very relevant in international business. This is a key factor for us when selecting and hiring companies that provide container inspection, repair, and maintenance services.”
MSC and Hutchison Ports had not responded to Container News’ requests for comment.
MSC’s complaint came just two weeks after it partnered with Notarc Management Group to revive construction of a container terminal in Isla Margarita in Panama.
The terminal, which can handle 5 million TEU annually, is already 40% complete. Construction was initially handled by a Chinese consortium, but the concession was revoked in 2021 for non-compliance.
Martina Li
Asia Correspondent
