Shippingtelegraph: CK Hutchison commences investment treaty arbitration against Panama

Published by shippingtelegraph

Hong Kong’s CK Hutchison Holdings Limited commenced international arbitration proceedings against Panama, escalating a dispute between the parties after Panama’s takeover of the Panama Ports Company (PPC) port terminals in Panama.

CK Hutchison accuses Panama over breaches of an investment protection treaty through sovereign acts that targeted a decades-old ports concession.

The dispute traces back to 4 February 2026, when CK Hutchison notified Panama of a treaty dispute.

The notification followed a year-long of state-level actions targeting the company’s assets, the company alleges, during which time the group attempted to resolve the dispute.

It is asserting that Panama, starting in early 2025, launched a campaign with a series of state actions targeting its investments.

In harsh language, CK Hutchison is saying that Panama intensified its state-campaign through executive actions and a radical takeover of the Balboa and Cristóbal port terminals controlled by PPC on February 23, 2026.

The company says it responded with a supplemental treaty notice.

“Panama ultimately held only one perfunctory consultation meeting more than six months after the treaty notice, and has made no offer of compensation or resolution,” the company claims in its statement.

CK Hutchison commenced arbitration proceedings against Panama on 20 August 2026 (19 August Panama) seeking damages of more than US$1.5bn for breaches of treaty obligations and international law.

It also clarified that CK Hutchison’s treaty rights are distinct from PPC’s contract rights being pursued in a separate contract arbitration, which then proceeded apace.

CK Hutchison said it continues to seek resolution and permanently reserves all rights.