CK Hutchison and its subsidiary, the Panama Ports Company (PPC), have intensified their legal actions in a dispute over the concession for operating the Balboa and Cristobal ports. PPC has clarified that it is pursuing at least $2 billion in damages through international arbitration, disputing Panama’s representation of this figure. Following a Supreme Court ruling declaring the contracts unconstitutional, Panama seized the ports on February 23 and quickly entered temporary agreements with Maersk and MSC for their operation.
Both CK Hutchison and PPC assert that Panama’s actions constitute “radical breaches” of applicable laws and treaty rights. They emphasize that they will not accept mere token relief and are accusing Panama of failing to engage in meaningful communication, which they describe as part of a broader “state campaign” over the past year. The company has also filed an administrative petition to reconsider the decree that allowed what it terms the “occupation” of the ports, asserting that the decree’s scope unlawfully mandates the seizure of all its property.
PPC claims that Panama unlawfully entered a private storage facility to seize documents and is demanding the immediate return of its legally protected materials. Meanwhile, the Panama Maritime Authority announced that terminal operations at Balboa have returned to full capacity under APM Terminals, while operations at Cristobal have been managed by Terminal Investment Limited since February 27. The authority plans to hold new tenders within 18 months, aiming to enhance competition by restricting companies to operating in only one port.
