Hong Kong-based conglomerate CK Hutchison has filed for arbitration seeking damages in excess of $1.5 billion after Panama's Supreme Court annulled its port concessions in a dispute over the Balboa and Cristobal terminals along the Panama Canal.
The claim follows a series of legal and regulatory actions by Panama, including a February order by President José Raúl Mulino for the temporary occupation of the terminals. CK Hutchison's local subsidiary, Panama Ports Company, initiated legal proceedings earlier this year, arguing that the measures breached an investment protection treaty.
The dispute escalated after Panama's Supreme Court ruled against CK Hutchison's concession in 2026, citing violations of local regulations. The company had previously announced plans in March 2025 to sell 43 global terminals, including those in Panama, to a consortium backed by BlackRock for over $19 billion in cash. The sale remains pending amid the ongoing legal conflict.
CK Hutchison reported a HK$496 million impact on its ports division due to the disruption in Panama, despite broader group underlying profit growth of 6.7% and a 4% rise in underlying EBITDA for the first half. The terminals in question are critical nodes in global shipping, handling significant volumes of container traffic.
China Cosco Shipping, A.P. Moller-Maersk, and MSC are among the shipping lines affected by the dispute. Beijing has publicly warned Panama of consequences following the annulment of the concession, signaling potential geopolitical implications.
