CK Hutchison Holdings commenced international arbitration proceedings against Panama, seeking more than US$1.5 billion (S$1.9 billion) in damages over the loss of its investments in two ports on the country’s strategic canal.
Panama breached an investment protection treaty through measures taken in 2025 and 2026, the company said on Aug 20. Those actions culminated in the termination of the concession for the ports of Balboa and Cristobal and the takeover of the terminals, it said.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, said its board “strongly disagrees” with Panama’s actions and warned shareholders and potential investors to “exercise caution” when dealing in its shares or other securities.
The dispute over Balboa and Cristobal has become a flashpoint in the intensifying rivalry between the US and China.
Beijing earlier warned Panama would pay a “heavy price” after the Central American country annulled CK Hutchison’s concession following pressure from President Donald Trump.
The latest action is separate from arbitration CK Hutchison is pursuing against AP Moller-Maersk following Panama’s takeover of the two ports.
In February, Panamanian President Jose Raul Mulino ordered the temporary occupation of the terminals after the country’s top court ruled against CK Hutchison’s concession.
The ports had been included in CK Hutchison’s planned sale of 43 terminals worldwide to a consortium backed by US investment firm BlackRock for more than US$19 billion in cash.
Announced in March 2025, the deal angered Beijing, which saw it as capitulating to American pressure, and has since become bogged down amid mounting geopolitical hurdles.
Seeking to secure China’s approval, CK Hutchison later invited state-owned China Cosco Shipping into the consortium, which also includes Italian billionaire Gianluigi Aponte’s MSC Mediterranean Shipping.
After Panama’s takeover of the two ports, Beijing asked state firms to halt talks over new projects in the Central American country, and advised shipping companies to reroute cargo where feasible, Bloomberg reported in February. Bloomberg
