CK HUTCHISON SEEKS $1.5BN FROM PANAMA OVER PORT SEIZURE

Hong Kong conglomerate CK Hutchison initiated international arbitration against Panama on Thursday, seeking more than $1.5 billion in compensation over the government's takeover of two ports at the Panama Canal. The company alleged that Panama breached an investment-protection treaty and violated international law through what it described as a "campaign of state attacks" against its assets. CK Hutchison said it notified Panama of the dispute on 4 February, following a series of government actions that began in early 2025. The dispute centres on the Balboa and Cristóbal terminals, which CK Hutchison's subsidiary Panama Ports Company operated under a 30-year concession.

Panama's Supreme Court invalidated the contract in January, ruling it unconstitutional after what the court said was "extensive deliberation". The government took control of the ports in February, seizing property, equipment, technology and employees, according to CK Hutchison. The company stated it had invested more than $1.8 billion in port infrastructure during its years of operation. President José Raúl Mulino's administration rejected CK Hutchison's claims, stating that the government had developed a phased transition plan more than a year in advance with international port experts and that it acted in defence of national sovereignty and the rule of law. The administration said it handed temporary administration of the ports to global shipping companies, including Denmark's Maersk, to prevent disruptions to Panama Canal operations.

CK Hutchison said Panama made no effort to resolve the dispute after receiving treaty notices and continued what the company described as a campaign of attacks and disinformation. A separate contractual arbitration by Panama Ports Company is seeking at least $2 billion in additional damages. Legal experts said investment treaty arbitration was typically lengthy, with the process likely to take at least three years to resolve.