Panama Ports Company (PPC), a subsidiary of the Hong Kong group CK Hutchison Holdings, has revealed that it is claiming at least $2 billion in damages from the Government of Panama following the state takeover of the ports of Balboa and Cristóbal. This figure is part of the international arbitration procedure that PPC initiated in February 2026 before the International Chamber of Commerce (ICC), in which the company asserts that the actions of the Panamanian state violated contractual, legal protections, and those derived from international investment treaties. When it filed the claim, the company indicated that it sought substantial damages, although it did not specify the exact amount at that time.
PPC operated the two ports since 1997 and had obtained an extension of its concession in 2021 for an additional period of 25 years. However, the Government of Panama assumed control of the terminals on February 23, 2026, after declaring the concession unconstitutional and issuing Executive Decree number 23, through which it took control of the facilities and associated assets. On the same day, state authorities accessed the terminals and took physical, administrative, and operational control of them, informing PPC that the concession had been terminated.
The ports of Balboa and Cristóbal, two strategic enclaves located at the entrances of the Panama Canal in the Pacific and Atlantic respectively, now operate under temporary concessions granted to APM Terminals and Terminal Investment Limited (TIL), the investment arm in terminals of MSC Mediterranean Shipping Company. The entry of these two large global operators occurred immediately after PPC’s exit, in a move that has generated significant controversy in the international maritime sector due to the implications it may have for the legal security of port investments in the region.
Following its expulsion from the facilities, PPC and its parent company CK Hutchison stated that judicial recourse was the only option to challenge the Panamanian government's decision. In a statement issued on March 6, PPC indicated that it had taken additional legal measures against what it termed an "illegal takeover" of the terminals by the Panamanian state starting from February 23, 2026.
In addition to the arbitration proceedings before the ICC, PPC has filed a legal challenge against Executive Decree number 23, considering that the regulation had an "extreme reach" that allowed for the seizure of all the company's property, including port equipment, documents, and other confidential information. The challenge questions what the company describes as the "radical implementation of the Decree and the seizure and misuse of PPC property not related to port operations." PPC has also requested the Panama Maritime Authority for the immediate return of documents and information that, according to the company, were taken from a private warehouse without proper judicial authorization.
For its part, CK Hutchison has submitted a supplement to a prior dispute notification under a bilateral investment treaty, claiming that the Panamanian state ignored prior consultations and communications before taking control of the terminals, assets, and personnel of the company. The parent company of the group has emphasized that it will seek full compensation for what it considers radical actions contrary to the rights of investors.
PPC has described the recent actions of the Panamanian government as "lacking legality" and has framed them within what it describes as a year-long campaign initiated by the state against the company. The company has indicated that the conduct of the Panamanian authorities is incompatible with the applicable legislation, contractual obligations, and rights arising from treaties, and has warned that it will continue to exercise all legal avenues available to it.
The case raises broad issues for the global port sector, as it affects the perception of risk associated with port concessions in countries with regulatory frameworks subject to political changes. The claim for $2 billion constitutes one of the largest international arbitration demands related to the port sector in recent years and will be closely followed by both terminal operators and institutional investors with a presence in Latin America.