Hong Kong-based CK Hutchison has launched arbitration proceedings against Panama over the cancellation of its concessions for the Balboa and Cristóbal ports at the Panama Canal. The company is seeking more than 1.5 billion dollars in damages.
Avisen Danmark reports, citing the news agencies Reuters and AFP, that the conglomerate has opened the case after Panama annulled the concession to run the two terminals. CK Hutchison argues that Panama breached an investment protection agreement by ending the concession contract held by its subsidiary Panama Ports Company.
A concession is a time-limited state permit allowing a private operator to run public infrastructure on set terms. According to AFP, CK Hutchison’s board said in a filing to the Hong Kong stock exchange that it strongly disagrees with Panama’s steps. The board added that it will keep seeking a solution while pursuing all rights under the treaty and international law.
Balboa and Cristóbal sit at opposite ends of the Panama Canal, on the Pacific and Atlantic sides. Panama Ports Company had operated the container terminals since the 1990s.
Separate cases and rising claims
Reuters reports that the parent company’s treaty arbitration runs separately from the subsidiary’s own case. Panama Ports Company filed its claim in February 2026 and expanded it to more than 2 billion dollars in March 2026. As noted by The Straits Times, CK Hutchison links the alleged breaches to Panamanian measures in 2025 and 2026.
According to Avisen Danmark, Panama’s Supreme Court decided in February that Denmark’s Maersk, through its subsidiary APM Terminals, should temporarily take over Balboa, while Swiss-based MSC should take over Cristóbal. Shipping Telegraph reports that Panama Ports Company stopped all operations at both terminals on February 23, 2026, and that APM Terminals has begun temporary operations at Balboa.
A port circular published by Norton Lilly in Panama states that the takeover was carried out as a temporary occupation to maintain port services. The circular puts the estimated transition period at 18 months while new concessions are tendered.
In a statement dated January 30, 2026, APM Terminals said it was willing to assume temporary operation of both terminals to support operational continuity. The company stressed that it is not involved in the legal proceedings over the concession.
Background to the dispute
As reported by Avisen Danmark, US President Donald Trump used his inauguration speech in January last year to criticize what he described as Chinese control of ports along the Panama Canal. Panama’s government subsequently annulled CK Hutchison’s concession contracts for Balboa and Cristóbal.
Per Reuters, the new filing follows measures by Panama that culminated in the annulment of the concessions and the state takeover of the terminals. Panama’s economy ministry and the president’s office did not immediately respond to Reuters’ request for comment.
