Panama colon container terminal controversy builds

The dispute is the subject of international arbitration but the latest development is that the Landbridge Group, a Chinese conglomerate with links to the Chinese Communist Party and the People’s Liberation Army, is now seeking to halt what it has described as a “sham arbitration process.” It has moved to request a US Court to issue an injunction as part of a broader claim that the arbitration is a fraudulent attempt to expropriate its investment in the new Colon terminal.

This latest move is seen as a step that could influence future arbitration proceedings and the overall approach to resolving disputes arising from international investments. The Colon terminal project was 40% developed at the time Landbridge was ousted from it, which overall is estimated to be a US1.4 billion project.

The Panama Maritime Authority revoked Landbridge’s concession in June 2021 and following this MSC partnered with MSC with Notarc Management Group, a global advisory, investment and management-consulting firm with a subsidiary in Panama, to finish the construction.