Hong Kong-based conglomerate CK Hutchison has launched international arbitration proceedings against Panama, seeking more than $1.5 billion in damages over the takeover of two strategically important ports at the entrances to the Panama Canal.
The dispute centres on the Balboa and Cristóbal terminals, which were operated for nearly three decades by Panama Ports Company (PPC), a CK Hutchison subsidiary. Panama’s Supreme Court annulled the company’s port concessions earlier this year, paving the way for the government to take control of the terminals.
CK Hutchison claims that a series of measures taken by Panama during 2025 and 2026 breached an investment protection treaty and ultimately resulted in the destruction of its concession rights and takeover of its port investments. The company said it had attempted to resolve the dispute through consultations before initiating the arbitration.
The latest case is separate from an earlier arbitration filed by PPC against the Panamanian government. That proceeding, launched in February, has since expanded to seek more than $2 billion in damages over the takeover of the two terminals and company property.
The Panama port dispute has become increasingly entangled in wider US-China geopolitical tensions. Concerns over Chinese-linked control of infrastructure around the Panama Canal intensified after former US President Donald Trump criticised China’s role in canal-related ports. Panama subsequently moved against CK Hutchison’s concessions.
The legal battle also complicates CK Hutchison’s proposed $23 billion sale of its global ports business to a consortium involving BlackRock and Mediterranean Shipping Company. The Panama terminals were included in the proposed transaction, which has faced geopolitical and regulatory obstacles.
For the global shipping industry, the dispute adds another layer of uncertainty around two ports occupying critical positions on the Pacific and Atlantic approaches to the Panama Canal. The outcome of the arbitration could have significant implications for port ownership, foreign investment protections and future infrastructure deals in the region.