A subsidiary of Hong Kong's CK Hutchison Holdings has filed an arbitration claim seeking US$2 billion from Panama over the government's seizure of two Panama Canal ports, following the company's earlier vows of legal action after a February court ruling. Panama Ports Company (PPC) accuses authorities of an illegal takeover and vows to pursue full compensation via the International Chamber of Commerce.
Building on its February statements condemning Panama's seizure of the Balboa and Cristobal ports, the Panama Ports Company (PPC)—a CK Hutchison Holdings subsidiary—announced on Friday it has submitted a US$2 billion damages claim against the Panamanian government under International Chamber of Commerce rules.
The ports, at either end of the Panama Canal, were seized in February after Panama's Supreme Court ruled unconstitutional the law renewing PPC's concession in 2021 through 2047. PPC described the actions as an 'illegal takeover' breaching law, contracts, and treaties.
"PPC and CK Hutchison will not relent—they will assert all of their rights and damages due because of the radical breaches and anti-investor conduct of the Panamanian state," the company stated. PPC accused authorities of misreporting the claim amount to media and emphasized seeking full compensation.
The dispute underscores risks for foreign investors in Panama, with PPC committed to upholding its rights amid ongoing legal proceedings.
