Panama Ports Company (PPC), a subsidiary of Hong Kong’s CK Hutchison, has filed arbitration against Maersk, accusing the Danish group of seeking to replace its operations in the Panama Canal. The legal proceedings go alongside an existing case Hutchison has launched against the Panamanian government over the decision earlier this year to scrap its concessions for two terminals in the Central American republic.

“Maersk undermined the contract and aligned with the Republic of Panama in connection with its State campaign against PPC and scheme to replace it through a takeover that installed new port operators,” PPC said.

The arbitration will be held in London, PPC said, adding that the claim against Maersk is separate from “ongoing steps by PPC to hold Panama to account for its anti-contract and anti-investor conduct”.

Panama said two months ago that a Maersk subsidiary, APM Terminals, would operate the port of Balboa, and that Terminal Investment Limited, owned by Mediterranean Shipping Co, would manage the port of Cristobal, both facilities having been part of the Hutchison ports empire since 1997.

Behind closed doors, authorities in Beijing have been taking action in response to Panama’s decision to revoke Hutchison’s Panama concessions, and the subsequent handing over temporary operations to subsidiaries of the world’s two largest containerlines. Officials from MSC and Maersk were hauled into Beijing’s Ministry of Transport last month, and all Panamanian-flagged ships suddenly face greater scrutiny when calling at the People’s Republic, while China’s state-run shipping giant COSCO has ceased all calls at Balboa and Cristobal.