CK Hutchison files arbitration over Panama port seizure

CK Hutchison filed international arbitration against Panama over the cancellation of its concession for the Balboa and Cristóbal ports and the government’s takeover of the terminals, seeking more than $1.5 billion in damages for the destruction of its investments. The company claims Panama breached an investment protection treaty through measures taken in 2025 and 2026 that led to the termination of the concession and expropriation of the ports. A Panama Supreme Court ruling in January and the subsequent takeover underpin its assertion of unlawful expropriation, while Panama Ports Company pursues a separate arbitration under the concession. The dispute unfolds amid broader U.S.–China tensions surrounding the Panama Canal and strategic assets, with Beijing previously warning of consequences and connected to a larger terminal sale that faced geopolitical hurdles. CK Hutchison’s actions include parallel claims against Maersk in London, signaling a broader strategy to protect its investments and potentially set a precedent for state intervention in critical infrastructure. The case underscores the legal and geopolitical risks facing foreign investors in Panama’s port assets and may influence future protections and arbitration outcomes for infrastructure investments.