CK Hutchinson seeks compensation for “serious breach of contract” after government seizes control of 2 Panama Canal ports
The country began an international arbitration process demanding at least US$2 billion from the Panamanian government after authorities forcibly seized two of its ports along the Panama Canal.
A unit of the Hong Kong conglomerate, Hutchison Ports PPC, said in a March 6 statement that it will tirelessly seek full compensation for Panama’s serious breach of contract and anti-investor actions, refusing to accept mere token compensation.
The dispute threatens to complicate CK Hutchison’s ongoing efforts to sell a vast global portfolio of ports to a consortium led by , a deal closely watched because of the possible participation of a Chinese state-owned shipping giant.
The conflict intensified in late February when Panama formally revoked PPC’s operating rights at the ports of Cristóbal and Balboa, on opposite sides of the canal.
The measure was taken after a decision by the country’s Supreme Court, on January 29, which considered the company’s concession contract, initially signed in 1997 and renewed for 25 years in 2021, unconstitutional.
Authorities took administrative and operational control of the terminals on February 23, prohibiting PPC representatives from accessing the sites and shutting down their operations.
The arbitration also targets subsequent government actions that the PPC characterized as an extreme abuse of power without valid judicial authorization.
On February 26, Panamanian authorities raided a private warehouse without prior notice, seizing documents protected by professional secrecy and other assets belonging to the company, unrelated to port operations, according to the company.
The 2 seized terminals were originally part of a package of 43 international ports that CK Hutchison intended to sell in March 2025.
Despite the Panamanian government’s intervention, the consortium led by BlackRock continues to move forward with negotiations for the remaining 41 ports, maintaining its participation in the talks, as reported by the Financial Times on March 3rd.
This report was originally in English by Caixin Global on March 9, 2026. It was translated and republished by Poder360 under mutual content sharing agreement.
