CK Hutchison seeks $1.5 billion from Panama in port dispute
CK Hutchison launches arbitration against Panama, seeking over $1.5 billion for the destruction of its port investments.
Hong Kong-based conglomerate CK Hutchison has initiated international arbitration proceedings against Panama, demanding damages exceeding $1.5 billion. The company alleges that Panama's actions over the past two years have effectively destroyed its investments in the Central American nation.
In a statement, CK Hutchison said Panama breached an investment protection treaty, with measures culminating in the "destruction of the concession contract for the ports of Balboa and Cristóbal and takeover of the port terminals." The board said it "strongly disagrees" with Panama's actions, which it claims violate the treaty.
The dispute stems from a diplomatic row that began when former U.S. President Donald Trump objected to Chinese ownership of ports along the Panama Canal. Panama subsequently cancelled the port concessions held by CK Hutchison's subsidiary, Panama Ports Company (PPC).
PPC, which operated the Balboa and Cristobal terminals for nearly three decades, is separately pursuing international arbitration launched in February after Panama's top court annulled its licences. In March, PPC widened its claims to more than $2 billion over what it called the state's illegal takeover of the terminals and company property.