CK Hutchison seeks over US$1.5 billion from Panama over port takeover

Hong Kong conglomerate CK Hutchison has initiated international arbitration proceedings against Panama, seeking over US$1.5 billion in damages, following the cancellation of a concession allowing the company to manage two ports in the Panama Canal. The dispute arose from a January ruling by Panama's supreme court, which invalidated the contract that permitted CK Hutchison's subsidiary, Panama Ports Company (PPC), to operate the Pacific port of Balboa and the Atlantic port at Cristobal.

This decision followed US President Donald Trump's claims that China effectively controlled the canal, exacerbating tensions between Washington and Beijing. CK Hutchison claims the cancellation constitutes a breach of an investment protection treaty, and the company's board strongly opposes Panama's actions. The company will pursue all available rights and remedies under the treaty and international law.

The PPC had previously filed a lawsuit opposing the suspension of its operations in February and had sought at least US$2 billion in damages. The Panama Canal, a vital artery for global trade, facilitates approximately 40% of US container traffic and five percent of worldwide trade.