HONG KONG — CK Hutchison announced on Thursday that it is pursuing over $1.5 billion in damages from Panama following the seizure of two canal‑side ports amid escalating U.S.–China tensions.
In its statement, CK Hutchison said it had launched fresh arbitration against Panama, accusing the nation of violating an investment protection treaty through sovereign actions aimed at a long‑standing ports concession, which the company described as a state‑directed assault on its assets in the country.
In February, Panama’s government took control of the Balboa and Cristobal ports at the canal’s entrances after the Supreme Court ruled that the concession granted to CK Hutchison’s subsidiary to operate those terminals was unconstitutional.
The two terminals, positioned at either end of the Panama Canal, have been drawn into the broader U.S.–China rivalry since Donald Trump’s return to the presidency last year, when he claimed that China was effectively controlling the waterway.
While the Panama Canal remains under Panamanian ownership and management, CK Hutchison’s subsidiary, Panama Ports Company, had operated the two terminals since 1997 and secured a 25‑year concession renewal in 2021.
Both Beijing and Hong Kong have criticized Panama’s move to seize the ports.
CK Hutchison, which is controlled by the family of Hong Kong’s wealthiest individual, Li Ka‑shing, unveiled a preliminary $23 billion agreement last year to divest its global ports portfolio—including the Panama terminals—to a consortium led by U.S. investment firm BlackRock. However, the transaction has stalled amid mounting geopolitical tensions and legal disputes involving China, the United States, and Panama.
In March, Panama Ports Company filed a separate claim seeking no less than $2 billion in compensation from Panama, arguing that the takeover was unlawful under international arbitration rules. CK Hutchison noted that those efforts were advancing.
CK Hutchison further explained that the arbitration launched on Thursday concentrates on its treaty‑based rights, which are separate from the contractual claims pursued by Panama Ports Company in the earlier proceedings.
In April, the subsidiary initiated arbitration against Danish shipping and logistics giant Maersk after the latter assumed control of certain port operations in Panama. Maersk responded that it did not consider itself liable for the allegations.
