The dispute between CK Hutchison Holdings and Panama has intensified after the Hong Kong-based conglomerate launched international arbitration seeking more than $1.5 billion in damages over the loss of its port concessions at the Panama Canal.
CK Hutchison alleges that Panama breached an investment protection treaty through measures taken in 2025 and 2026 that ultimately led to the termination of its concessions and the takeover of the Balboa and Cristóbal container terminals, located at opposite ends of the canal.
The legal battle follows a ruling by Panama’s Supreme Court that annulled the concession held by CK Hutchison’s subsidiary, Panama Ports Company (PPC). The company had operated the two terminals since 1997, with its concession renewed for 25 years in 2021.
The dispute has also become entangled in wider US-China geopolitical tensions. US President Donald Trump had criticised Chinese influence around the Panama Canal, while Panama subsequently moved to end CK Hutchison’s operating rights. The terminals were later handed to other operators on an interim basis.
The latest arbitration is separate from an earlier claim by Panama Ports Company, which is seeking at least $2 billion from Panama over the takeover. CK Hutchison said its new case concerns its treaty rights and is distinct from PPC’s contractual claims.
CK Hutchison has also initiated separate arbitration involving A.P. Moller-Maersk, which took over operations at Balboa, after the Panama dispute led to changes in control of the terminals.
The escalating legal proceedings add uncertainty to the future ownership and operation of two strategically important container terminals serving one of the world’s key maritime trade routes. Panama has not publicly responded to the latest arbitration claim.