CK Hutchison intensifies legal actions as Panama moves to takeover ports

Hong Kong’s CK Hutchison Holdings Limited (CKHH) said on Friday it has intensified its legal response to the takeover by the Panama State of the port operations of the company’s subsidiary, Panama Ports Company, S.A. (PPC). 

The company submitted a supplement to its previous notice of dispute against the Panama State under an applicable investment treaty that provides for international arbitration, according to the company’s statement on Friday (March 6).

The move comes after Panama’s Supreme Court of Justice ruled against Panama Ports Company S.A. (PPC), a member of Hutchison Ports and operator of the Balboa and Cristóbal port terminals, declaring the concession granted to Panama Ports Company to operate the ports at the Panama Canal “unconstitutional” – terminals it had managed under the concession contract since 1997.

Furthermore, CKHH said in its statement that on Feb. 23 the official gazette of Panama published the ruling of the Supreme Court of Justice of Panama regarding law no. 5 of January 16, 1997, originally announced on January 29, 2026 (the ruling), and an executive decree issued by the President of Panama.

In a statement APM Terminals (APMT), an affiliate of A.P. Moller-Maersk, said has begun temporary operations at the Port of Balboa (Pacific side) in Panama for a period of up to 18 months.

Separately, CK Hutchison – a port investor, developer and operator – said PPC had ceased all operations at the terminals at Balboa and Cristobal on February 23, while describing the executive decree as “unlawful.”

In a statement issued on Friday, the company said that PPC filed an administrative petition seeking reconsideration of executive decree no. 23, the executive action that led to what Hutchison calls the “occupation” of facilities and the taking of property of PPC. 

These actions follow the previous filing by PPC of an international arbitration against the Panama State under the rules of the International Chamber of Commerce.

“The company disagrees with the latest prejudicial conduct by the Panama State and will continue to assess with counsel and pursue recourse to available national and international legal proceedings in the matter,” the statement of Hutchison reads.