CK Hutchison seeks USD 1.5 billion from Panama over canal ports seizure

CK Hutchison has launched fresh arbitration against Panama over the seized canal ports. The move widens a geopolitical and legal battle involving Panama, China and the United States.Image used for representational purposes onlyHong Kong conglomerate CK Hutchison on Thursday said it is seeking more than USD 1.5 billion in damages from Panama after the Central American country seized two canal ports that have been at the centre of US-China tensions.The company said it has started fresh arbitration proceedings against Panama, alleging that the country breached an investment protection treaty through "sovereign acts that targeted a decades-old ports concession" in a "state attack campaign" on its assets there.Panama's government seized the Balboa and Cristobal ports in February after the country's Supreme Court ruled that a concession held by CK Hutchison's subsidiary to operate the two ports was unconstitutional. The ports are located at either end of the Panama Canal.The two ports became part of US-China tensions after Donald Trump's return to the White House last year, when he alleged that China was "running" the canal. The canal is owned and managed by Panama, but CK Hutchison's subsidiary, Panama Ports Company, had been operating the two ports since 1997 and had renewed its concession for 25 years in 2021. Beijing and Hong Kong had earlier hit back at Panama over the takeover of the ports. CK Hutchison, controlled by the family of Hong Kong billionaire Li Ka-shing, had last year announced an initial USD 23 billion deal to sell its global ports business, including the two Panama ports, to a consortium involving US investment firm BlackRock. However, the deal has made little progress amid geopolitical tensions and legal challenges involving China, the US and Panama.In March, Panama Ports Company separately sought at least USD 2 billion in compensation from Panama under international arbitration proceedings, saying the takeover was unlawful. CK Hutchison said those proceedings were making progress. It added that the new proceedings launched on Thursday concern its treaty rights, which are separate from Panama Ports Company's contract rights in the earlier case. In April, the subsidiary also launched arbitration proceedings against Danish shipping and logistics group Maersk after it took over some of its port operations in Panama. Maersk had then said it did not believe it was liable for the claims. Overall, CK Hutchison is now pursuing multiple legal challenges linked to Panama's takeover of the two canal ports and the broader dispute around their future.With PTI Inputs- EndsPublished By: India Today Web Desk Published On: Aug 20, 2026 10:36 IST