CK Hutchison Holdings has launched international arbitration against Panama, seeking more than HK$11.7 billion (approximately US$1.5 billion) in damages over the government’s takeover of two ports at the entrances to the Panama Canal. The Hong Kong-based conglomerate announced the move on Thursday.
The company, backed by the family of tycoon Li Ka-shing, said Panama breached an investment-protection treaty and international law through “sovereign acts” targeting its decades-old concession to operate the Balboa and Cristobal terminals. The two facilities sit at the Pacific and Atlantic mouths of the waterway, among the busiest shipping corridors in the world.
The dispute traces back to a Panamanian court ruling that voided CK Hutchison’s long-running port contract. That decision cleared the way for the government to install Maersk as a temporary operator of the terminals while the future of the concession was settled.
CK Hutchison had held the concession for more than two decades, building the ports into anchors of its global logistics network. The company argues that the takeover stripped it of assets it developed and operated under legally binding terms, entitling it to compensation under treaty protections covering foreign investors.
The arbitration adds a fresh legal front to a saga that has drawn in Washington, Beijing and Panama City. The ports became a flashpoint after pressure over foreign control of infrastructure near the canal, with the Trump administration voicing objections to Chinese-linked operators near the strategic route.
Beijing, for its part, has pushed back sharply. Panama has defended the independence of its courts after Chinese officials warned of consequences over the handling of the port contracts.
The canal handles a large share of trade moving between Asia and the Americas, making control of its terminals a matter of commercial weight far beyond Panama’s borders. For shippers, the operator change has meant renewed uncertainty over service continuity at two of the region’s key transit points.
CK Hutchison, one of Asia’s largest port operators, runs terminals across dozens of countries. The Panama arbitration will now proceed through international tribunal channels, a process that typically stretches over several years before any award is decided.