By South China Morning Post | Created at 2026-08-20 01:37:00 | Updated at 2026-08-20 02:00:33
45 minutes ago
Latest claim by Li Ka-shing family-backed conglomerate brings total demands over canal port takeover to more than HK$27.4 billion
Published: 9:14am, 20 Aug 2026
Updated: 9:25am, 20 Aug 2026
Hong Kong-based CK Hutchison has launched international arbitration against Panama, seeking more than HK$11.7 billion (US$1.5 billion) in damages over the government’s takeover of two strategic ports at the entrances to the Panama Canal.
Announcing the move on Thursday, the Li Ka-shing family-backed conglomerate said Panama had breached an investment-protection treaty and international law through “sovereign acts” targeting its decades-old concession to operate the Balboa and Cristobal terminals, and “destroyed CK Hutchison’s investments in Panama”.
“Panama has demonstrated that it has become a risky country that disregards the rule of law, corporate form, the scope of parties to a contract, the scope of arbitration agreements, treaty rights and the resolution of treaty disputes,” the conglomerate said in a statement.
The latest claim is separate from contractual arbitration initiated by its 90 per cent-owned subsidiary, Panama Ports Company (PPC), which is seeking at least US$2 billion in damages over what it called an illegal takeover of the operations.
CK Hutchison said it notified Panama of the treaty dispute on February 4, following a year-long state campaign against its assets, but that efforts to reach a resolution had failed.
Panama’s Supreme Court ruled in January that PPC’s concession to operate the ports was unconstitutional, annulling the contract. The government took control of the terminals on February 23.
