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[BUSINESS] · Panama, Hong Kong SAR China, China, United States · 5 sources

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CK Hutchison seeks $1.5 billion in arbitration against Panama over port seizure

CK Hutchison Holdings has launched international arbitration against the Republic of Panama, seeking over $1.5 billion in damages. The company alleges that Panama violated an investment protection treaty through a series of actions that led to the seizure of the Balboa and Cristóbal port terminals.

The dispute follows a January 2026 ruling by the Panamanian Supreme Court that declared the company's port concession agreements unconstitutional. This was followed by a February order from President José Raúl Mulino for the state to take temporary control of the facilities. CK Hutchison's subsidiary, Panama Ports Company (PPC), is also pursuing a separate arbitration claim for more than $2 billion regarding the takeover of its assets and operations.

The conflict is set against a complex geopolitical backdrop involving US-China tensions over control of strategic assets in the Panama Canal. A previous $22.8 billion deal to sell 43 of CK Hutchison's global ports to a US-led consortium faced delays due to regulatory scrutiny and political sensitivities. China's Ministry of Foreign Affairs has criticized the Panamanian court's decision, stating it harms the legitimate rights of Hong Kong-based enterprises.

Entities

Balboa Port · CK Hutchison Holdings · Cristóbal Port · José Raúl Mulino · Panama · Panama Ports Company

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