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CK Hutchison claims over $1.5 billion from Panama over port exit
🇵🇾 Paraguay /Economy & Trade

CK Hutchison claims over $1.5 billion from Panama over port exit

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • Hong Kong conglomerate CK Hutchison has initiated a new international arbitration against Panama, demanding over $1.5 billion.
  • The claim stems from the alleged destruction of investments in the Balboa and Cristóbal ports, located at the Panama Canal's entrances.
  • Panama's Supreme Court declared the port concessions unconstitutional in January, leading to the government taking control of the terminals in February.

Hong Kong-based conglomerate CK Hutchison announced on Thursday the initiation of a new international arbitration against Panama, seeking over $1.5 billion. The company alleges the destruction of its investments in the Balboa and Cristóbal ports, strategically located at the entrances to the Panama Canal.

In a statement filed with the Hong Kong Stock Exchange, CK Hutchison stated that the arbitration procedure began on Thursday. The company accuses Panama of violating an investment protection treaty after its attempts to reach a resolution with the Panamanian state failed. CK Hutchison asserts that Panama's actions in 2025 and 2026 led to the annulment of the concession contract for Balboa and Cristóbal and the subsequent takeover of both terminals.

The company firmly disagrees with Panama's measures, deeming them contrary to the investment protection treaty. CK Hutchison stated its intention to continue seeking a resolution with Panama while defending its rights under international law. This new proceeding is separate from an existing arbitration initiated by Panama Ports Company (PPC), a CK Hutchison subsidiary. PPC is pursuing its contractual rights, with claims against the Panamanian state exceeding $2 billion due to what it considers an illegal seizure of the ports and assets.

The conflict escalated after Panama's Supreme Court declared the concessions for the Balboa and Cristóbal ports, originally granted in 1997, unconstitutional in January. Following this ruling, Panamanian authorities assumed control of the terminals in February, entrusting their temporary operation to other international operators. This action occurred amidst pressure from the United States regarding alleged Chinese influence around the Panama Canal. The dispute created tension between Panama and China, with Beijing warning it would defend its companies' interests and Panama experiencing an increase in detentions of Panamanian-flagged vessels in Chinese ports. Panama attributed this to deteriorating bilateral relations, while China cited maritime security reasons for its inspections.

DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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