Hong Kong firm sues Panama for $1.5 billion over canceled port concession

Hong Kong-based CK Hutchison has launched an arbitration case against Panama, demanding over $1.5 billion in compensation. The company claims Panama breached an investment protection agreement by canceling its concession to operate the Balboa and Cristóbal ports in the Panama Canal. CK Hutchison stated its board "strongly disagrees with the steps Panama has taken in violation of the treaty" and will pursue all legal rights.

The cancellation followed criticism from then-U.S. President Donald Trump about Chinese operations at Panamanian ports. Panama's government subsequently annulled CK Hutchison's concession contracts. Danish Mærsk's subsidiary APM Terminals was temporarily assigned the Balboa port, and Swiss MSC took over Cristóbal.

CK Hutchison's subsidiary, PCC, had previously sued to halt operations and demanded at least $2 billion in compensation. The company's board noted that PCC's arbitration case against Panama is proceeding separately from the parent company's case. Panamanian officials have not yet responded to requests for comment.

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The board strongly disagrees with the steps Panama has taken in violation of the treaty. The company will continue to seek a solution with Panama while fully pursuing all of the company's rights and legal remedies under the treaty and international law.