Hong Kong conglomerate CK Hutchison Holdings has launched international investment treaty arbitration against Panama, seeking more than $1.5 billion in compensation over what it says were unlawful state actions that dismantled its long-term port investments in the country.
The company formally filed proceedings against the Republic of Panama on 20 August, accusing the government of breaching bilateral investment protections and international law through a series of regulatory, administrative and sovereign measures targeting its local port operations.
The dispute dates back to 4 February 2026, when CK Hutchison notified the Panamanian government of a formal treaty dispute. The company says the notification followed a year of sustained state action against its local port assets, during which it sought to resolve the matter through diplomatic and negotiated channels without success.
Beginning in early 2025, Panama launched what CK Hutchison described as an unprecedented regulatory and administrative campaign against its investments. The company alleges that the measures included investigations that failed to follow standard due process, government challenges to the constitutional basis of its port concession and what it called “a premeditated policy scheme designed to oust” its local subsidiary, Panama Ports Company, S.A.
(PPC), from its port operations. The dispute escalated on 23 February, when Panamanian authorities forcibly took control of the PPC-operated Balboa and Cristóbal port terminals. According to CK Hutchison, the takeover extended to port property, operational equipment, technical systems, employees and confidential proprietary documents and materials, resulting in substantial economic and operational losses.
CK Hutchison said Panama has since failed to remedy the alleged treaty breaches or offer a substantive resolution. “More than six months after the initial treaty notification, Panama only held one perfunctory consultation session and has never proposed any compensation plan or substantive settlement solution,” the company said.
The conglomerate said it had disclosed the details of the dispute to counter what it described as widespread inaccurate information released by the Panamanian side. Despite launching arbitration, CK Hutchison said it remains open to a reasonable negotiated settlement while reserving all legal rights and remedies available under applicable international treaties and laws.