CK Hutchison Seeks $1.5 Billion From Panama Over Canal Ports

CK Hutchison has launched international arbitration against Panama, seeking more than $1.5 billion in damages following the loss of control over two strategically important ports near the Panama Canal.

The Hong Kong conglomerate said Thursday that Panama violated an investment protection treaty through measures introduced in 2025 and 2026. Those actions ultimately terminated CK Hutchison’s concession for the Balboa and Cristobal terminals and led to the ports being taken over.

The new CK Hutchison arbitration is separate from a case filed by its Panama Ports Company subsidiary after the concessions were revoked. The company has also started arbitration proceedings against shipping giant A.P. Moller-Maersk in connection with the takeover.

The Panama ports dispute has increasingly become entangled in geopolitical tensions involving the United States and China. Panama’s Supreme Court ruled against CK Hutchison’s concession earlier this year, while President José Raúl Mulino subsequently ordered the temporary occupation of the terminals in February. Beijing responded to the annulment by warning Panama of serious consequences, as the decision came amid pressure from U.S. President Donald Trump.

Balboa and Cristobal were also part of CK Hutchison’s proposed sale of 43 ports worldwide to a consortium backed by BlackRock. Announced in March 2025, the transaction was expected to generate more than $19 billion in cash for the conglomerate.

However, the CK Hutchison port sale encountered opposition from Beijing and has remained stalled amid growing geopolitical uncertainty. The company later brought state-owned China Cosco Shipping and MSC into the consortium in an attempt to gain Chinese support for the transaction.

The Panama disruption is already affecting CK Hutchison’s financial results. The company recently reported that its ports division suffered a HK$496 million impact related to the situation. Despite the setback, underlying EBITDA at the ports business increased 4% during the first half of the year.

CK Hutchison’s overall underlying profit also climbed 6.7%, demonstrating broader earnings growth even as the conglomerate faces a potentially lengthy legal battle over its Panama Canal port operations.