CK Hutchison opens $1.5 billion arbitration fight with Panama

Hong Kong-based CK Hutchison has launched international arbitration against Panama, seeking more than $1.5 billion in damages over the loss of its investments in the Balboa and Cristobal ports, Marine Insight reports. The company says Panama breached an international investment protection treaty through actions that led to the cancellation of its port concession.

Panama took control of the two terminals in February after the country’s Supreme Court ruled that CK Hutchison’s concession was unconstitutional. The company’s subsidiary, Panama Ports Company, had operated the ports since 1997 and received a 25-year extension in 2021.

The dispute has also become part of wider U.S.-China tensions over the Panama Canal. Former U.S. President Donald Trump had accused China of having too much influence over ports along the waterway.

Panama Ports Company is separately seeking more than $2 billion from Panama through contract-based arbitration. It has also launched arbitration against Maersk over the transfer of port operations following the takeover. Maersk rejects the claim.

 

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