Panama Ports Company, the CK Hutchison subsidiary that operated two key terminals near the Panama Canal for nearly 30 years, announced Tuesday that its damages claim against Panama has climbed beyond $2 billion in ongoing international arbitration proceedings.
The escalation comes roughly a month after what the company describes as an illegal government takeover of the Balboa and Cristobal port terminals. Panama Ports filed supplemental claims under the International Chamber of Commerce’s arbitration framework, intensifying what has become a high-stakes legal battle with significant geopolitical undertones.
Panama’s presidency and maritime authority have not commented on the latest developments.
The dispute traces back to a Supreme Court ruling in late February that led Panama to cancel CK Hutchison’s port concessions. That decision came amid sustained pressure from Washington to limit Chinese commercial influence around the canal, a critical artery handling roughly 5% of global maritime trade.
Panama Ports alleges authorities unlawfully seized property during the takeover, confiscated protected documents, and blocked the company from accessing its own files and computer systems. According to the company, Panama has continued what it calls a coordinated campaign against the firm while refusing to negotiate property access or compensation.
The arbitration process itself has become contentious. Earlier this month, Panama Ports claimed the government missed a March 13 response deadline due to inadequate legal representation. President José Raúl Mulino dismissed those accusations as “outrageous” and “a lie,” insisting his administration had retained international counsel to defend Panama’s position.
The ongoing conflict has also cast uncertainty over CK Hutchison’s planned $23 billion deal to sell a majority stake in its global ports business to a consortium led by BlackRock and Mediterranean Shipping Company. The company confirmed this month that negotiations remain active.
Meanwhile, Panama has issued temporary 18-month concessions to maintain port operations. APM Terminals now manages Balboa, while TIL Panama, an MSC subsidiary, runs Cristobal.
