CK Hutchison seeks over US$1.5 billion from Panama over port takeover

Hong Kong's CK Hutchison Holdings has launched international arbitration proceedings against Panama, seeking over US$1.5 billion in damages. The conglomerate claims Panama breached an investment protection treaty when it canceled the concession for CK Hutchison's subsidiary, Panama Ports Company (PPC), to operate the Pacific port of Balboa and the Atlantic port at Cristobal.

The dispute escalated following a January ruling by Panama's supreme court that invalidated the contract. This decision occurred amidst broader geopolitical tensions, including claims by then-US President Donald Trump regarding China's influence over the Panama Canal. CK Hutchison asserts that Panama's actions led to the destruction of its investments in the country.

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The Company is seeking damages of more than US$1.5 billion for the destruction of the Company’s investments in Panama.

In a filing to the Hong Kong Stock Exchange, the company's board of directors stated their strong disagreement with Panama's measures, which they believe violate the treaty. CK Hutchison intends to pursue all available rights and remedies under international law while also seeking a resolution with the Panamanian government.

Previously, PPC had filed a lawsuit in February opposing the suspension of its operations and later announced it was seeking at least US$2 billion in damages. The company clarified that PPC would continue to pursue its distinct rights through separate arbitration proceedings. The Panama Canal is a vital global trade artery, handling approximately 40 percent of U.S. container traffic and five percent of world trade.

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The Board strongly disagrees with the measures taken by Panama in violation of the treaty. The Company will continue to seek resolution with Panama while pursuing to the utmost all of the Company’s rights and remedies under the treaty and international law.