CK Hutchison Subsidiary Files Arbitration Over Invalidated Panama Canal Ports Contract

Panama Ports Company (PPC), a unit of CK Hutchison (0001.HK), has commenced ICC arbitration in Paris following Panama’s Supreme Court voiding its operating concession at the Panama Canal. The court’s decision, issued February 3, 2026, declared the ports contract unconstitutional after a sustained campaign by the Panamanian government over the past year. PPC said the government’s abrupt actions, including a transition plan and unannounced visits, have jeopardized its concession, which was awarded through a transparent bidding process. It alleges violations of contract law and seeks unspecified damages, maintaining operations at the ports while awaiting resolution. The Panama Canal Authority has selected APM Terminals of Maersk (MAERSK-B.CO) to manage the Balboa and Cristobal ports pending re-bidding. PPC processes about 4 million TEUs annually. The dispute follows Trump-era calls for U.S. control of the canal and heightened security scrutiny of China’s maritime presence.