CK Hutchison wants $1.5bn in Panama terminals compensation

FT: China told Maersk and MSC to drop Panama port operations THE FINANCIAL TIMES reports: China demanded Europe’s two largest shipping companies cease operating ports on the ... WMT: BULLET QUESTION WMT: CFO TO ANALYSTS WMT: EYES ON TARIFF REFUNDSWMT: HEADWINDSUPS: BEATING RISK-FREE BUTFDX: MULTI-BILLION CONTRACTWMT: HAMMERED IN PRE-MARKET TRADEWMT: TRADING UPDATE ON THE WAYWTC: ROLLER COASTERKNIN: RESTRUCTURING ROAD OPERATIONSMAERSK: HIGH TIDEHLAG: CONSOLIDATING STRONGHOLDSZIM: DEAL UPDATEZIM: TRADING UPDATE OUT AMZN: DRONE DELIVERY GROWTHLOW: TRADING UPDATE OUT WMT: BULLET QUESTION WMT: CFO TO ANALYSTS WMT: EYES ON TARIFF REFUNDSWMT: HEADWINDSUPS: BEATING RISK-FREE BUTFDX: MULTI-BILLION CONTRACTWMT: HAMMERED IN PRE-MARKET TRADEWMT: TRADING UPDATE ON THE WAYWTC: ROLLER COASTERKNIN: RESTRUCTURING ROAD OPERATIONSMAERSK: HIGH TIDEHLAG: CONSOLIDATING STRONGHOLDSZIM: DEAL UPDATEZIM: TRADING UPDATE OUT AMZN: DRONE DELIVERY GROWTHLOW: TRADING UPDATE OUT CK Hutchison Holdings said yesterday it has initiated international arbitration proceedings against the government of Panama, seeking more than $1.5bn in damages following the Central American country’s takeover of the Hong Kong-based conglomerate’s strategically vital port terminals at Balboa and Cristóbal. The move escalates a bitter dispute that began in 2025, when Panamanian authorities launched a series of measures against CK Hutchison’s local subsidiary, Panama Ports Company (PPC). Those actions culminated this year in the effective destruction of the concession contract that had granted PPC long-term operating rights over the two key ports flanking the Pacific and Atlantic entrances to the Panama Canal. The Panamanian authorities’ actions were seen as caving in to pressure from US President Donald Trump, who had alleged that through CK Hutchison, China was controlling the Panama Canal. On 23 February, Panama’s Supreme Court nullified CK Hutchison’s port concessions, and the government handed temporary control of Balboa and Cristobal to APMT and TiL, the respective terminal operating arms of AP Moller Maersk and MSC. In a formal statement, CK Hutchison’s board said it had “strongly disagreed” with Panama’s actions, which it characterised as treaty violations. After repeated attempts to find a negotiated resolution failed, the company filed its arbitration claim on August 20 under an investment protection treaty between Panama and the relevant jurisdiction. A company spokesperson confirmed that the $1.5bn claim reflects the value of what the board described as the “destruction” of its investments in Panama. The ports are among the most strategically important in the Western Hemisphere, handling a significant share of transhipments moving through the canal. The arbitration runs parallel to a separate, previously announced proceedings launched by PPC through the International Chamber of Commerce on 4 February; these are being pursued under the terms of the original concession contract. CK Hutchison said PPC would “continue to pursue its own distinct rights” in that forum. Despite the legal escalation, CK Hutchison left the door open to a diplomatic solution. CK Hutchison director Edith Shih said: “The company will continue to seek resolution with Panama while pursuing to the utmost all of the company’s rights and remedies under the treaty and international law.” The dispute marks one of the most high-profile investment treaty claims ever filed by a Chinese-linked conglomerate against a Latin American government, and comes amid heightened global attention on critical infrastructure assets in the region. Panama has not yet publicly responded to the arbitration filing. For uninterrupted access, sign in or sign up to The Daily News, Premium or The Loadstar Enterprise Plan. Comment on this article