The Panama Ports Company (PPC) said in a statement that Maersk broke a contract by siding with Panamanian authorities in a dispute over the waterway that saw a court annul in January the PPC’s rights to manage two key ports.

“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,” the company 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”.

The PPC said that since the takeover in January, a Maersk-affiliated port operator has utilised PPC facilities and information under a “pre-arranged concession contract” to manage the Balboa terminal.

Panama declared in February that a Maersk subsidiary, APM Terminals, would operate the port of Balboa, and that Terminal Investment Limited, owned by the logistics giant MSC, would manage the port of Cristobal.

The PPC filed a lawsuit opposing the suspension of its Panama Canal operations in February, and announced a month later it was seeking at least US$2 billion in damages.

Panama has been caught up in broader tensions between the US and China, with president Donald Trump last year claiming, without evidence, that China effectively runs the canal.

The US last week reiterated accusations that China had detained Panama-flagged ships in response to the takeover of the key ports – claims Beijing said were fabricated.

The Panama Canal, which connects the Atlantic and Pacific oceans, handles about 40% of US container traffic and 5% of world trade.