CK Hutchison seeks US$1.5 billion from Panama in treaty dispute arbitration
The legal tussle has complicated the group’s plan to sell dozens of ports worldwide
CK Hutchison, a Hong Kong-based conglomerate, has filed an international arbitration case against Panama, seeking damages exceeding US$1.5 billion. The dispute stems from Panama's alleged breach of an investment protection treaty, which resulted in the destruction of port concession contracts and takeover of port terminals. CK Hutchison, owned by Hong Kong’s richest man, Li Ka-shing, claims that Panama’s actions violate the treaty.
The conglomerate’s subsidiary, Panama Ports Company (PPC), has also initiated arbitration proceedings, expanding its claims to over US$2 billion due to the illegal takeover of two port terminals and company property. The legal battle has hampered CK Hutchison’s plans to sell its Panamanian ports, including Balboa and Cristobal terminals, to a consortium, which includes BlackRock, Mediterranean Shipping Company, and another strategic investor.
The dispute began when US President Donald Trump objected to Chinese ownership of ports along the Panama Canal, leading to Panama’s cancellation of its port concessions in the country.
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