Members of the Panama Police guard the entrance to the port of Balboa (Pacific) in Panama City, Panama, in February The ports of Balboa (Pacific) and Cristobal (Atlantic), near the Panama Canal, were paralyzed amid the transition of the operator after the departure of Hong Kong conglomerate CK Hutchison after cancellation of the concession by a court ruling. File Photo by Carlos Lemos/EPA
Aug. 20 (UPI) -- Hong Kong conglomerate CK Hutchison said Thursday it has initiated international arbitration against Panama and wants more than $1.5 billion in compensation for alleged breaches of a contract that allowed it to operate two ports along the Panama Canal.
The company said in a statement that it notified Panama of its decision, alleging the "destruction" of its investments and violations of an investment protection treaty.
CK Hutchison said the dispute stems from a series of decisions and actions by the Panamanian government that affected a port concession held for 30 years by Panama Ports Company, or PPC, a CK Hutchison subsidiary.
According to the company, Panama abruptly launched a "campaign of state attacks" against its investments in early 2025, including investigations without due process, a challenge to the constitutionality of its own contract law and an attempt to replace Panama Ports Co.
