CK Hutchison's Panama Ports Company (PPC) has expanded its international arbitration claims against Panama to over $2bn, following the government's seizure of its container terminals at Balboa and Cristobal on either side of the Panama Canal, Reuters reported.
The claims, filed under International Chamber of Commerce rules, were supplemented on March 24 after Panama's Supreme Court ruled PPC's terminal concessions unconstitutional, with authorities subsequently taking over the facilities. CK Hutchison described the seizure as 'unlawful,' citing what it called executive overreach, occupation of premises and seizure of proprietary documents as part of 'a State campaign against PPC that has continued for more than a year.'
Panama has handed temporary operations of Balboa to Maersk's APM Terminals and Cristobal to MSC's TiL for 18 months each. CK Hutchison said Panama had failed to file an initial response to the arbitration, accusing the government of seeking to delay proceedings and drag in parties outside the applicable contract. 'In a chilling signal to foreign investors, Panama is seeking to slow the arbitration,' PPC said.
The dispute has drawn international attention given the canal's strategic importance and broader tensions over Chinese-linked port assets in the region.
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