CK Hutchison seeks $1.5 billion from Panama over port seizure
CK Hutchison files new arbitration against Panama, seeking over $1.5 billion for seized canal ports.
Hong Kong-based conglomerate CK Hutchison has initiated fresh arbitration proceedings against Panama, demanding more than $1.5 billion in compensation for the seizure of two strategic canal ports. The company announced the move on Thursday, alleging that Panama violated an investment protection treaty through what it described as a coordinated campaign against its assets in the Central American nation.
The dispute stems from Panama's government takeover of the Balboa and Cristobal ports in February, after the country's Supreme Court ruled that the concession held by CK Hutchison's subsidiary was unconstitutional. The ports sit at opposite ends of the Panama Canal, a waterway that has become a flashpoint in U.S.-China tensions since President Donald Trump returned to office and accused China of effectively controlling the canal.
CK Hutchison's subsidiary, Panama Ports Company, had operated the two ports since 1997, with a concession renewed for another 25 years in 2021. The canal itself remains owned and managed by Panama, but the port operations had been a key commercial foothold for the Hong Kong firm.
The latest arbitration focuses on treaty rights, which the company says are separate from the contract-based claims already filed by Panama Ports Company in March, seeking at least $2 billion. That earlier case is reportedly progressing.
In a separate but related development, the subsidiary also launched arbitration in April against Danish shipping giant Maersk, after Maersk assumed control of some port operations in Panama. Maersk has denied any liability.
CK Hutchison, controlled by the family of Hong Kong's wealthiest tycoon Li Ka-shing, had earlier agreed to sell its global ports business—including the Panama assets—to a consortium led by U.S. investment firm BlackRock in a deal valued at $23 billion. That transaction has stalled amid geopolitical friction and legal disputes involving China, the U.S., and Panama.
Beijing and Hong Kong have both criticized Panama's takeover of the ports, adding another layer to the ongoing diplomatic standoff.