CK Hutchison launches $1.5 billion international arbitration against Panama over port seizure

CK Hutchison Holdings Limited has launched an international arbitration against Panama, seeking more than $1.5 billion in damages. The Hong Kong-based multinational alleges that the Panamanian state violated an investment protection treaty and international law. The dispute stems from a series of government actions that culminated in the intervention of the Balboa and Cristóbal port terminals.

This legal action follows an earlier arbitration initiated by CK Hutchison's local subsidiary, Panama Ports Company (PPC), in February 2026. The current claim is based on the port concession contract law, asserting the company's rights against the state. CK Hutchison detailed a timeline of events, stating that the conflict escalated in early 2025 when the Panamanian government allegedly began a state campaign against PPC.

According to the company, this campaign included investigations without due process, a shift in legal stance that had protected the concession for three decades, and challenges to the constitutionality of contractual agreements. Tensions reached a peak on February 23, 2026, when authorities seized operational control of the Balboa and Cristóbal terminals, taking over facilities, equipment, technology, confidential material, and personnel.

After more than six months passed since the formal notification of the dispute without any proposed solutions or compensation from the executive branch, CK Hutchison decided to proceed with international arbitration. The company emphasized that this arbitration, concerning investment treaty violations, is separate from the contractual arbitration managed by its subsidiary PPC. From Hong Kong, CK Hutchison expressed regret over the Panamanian administration's "lack of legal guarantees and the dissemination of inaccurate information," vowing to defend its economic rights and interests.

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lack of legal guarantees and the dissemination of inaccurate information