Panama ports dispute

CK Hutchison has started arbitration in London against Maersk after Panama took control of two canal ports and replaced the operator at Balboa. (bloomberg.com) The case was filed by Panama Ports Company, CK Hutchison’s local unit, and it is separate from the company’s damages claim of more than $2 billion against the Panamanian government. Bloomberg reported the filing on April 7, 2026. (bloomberg.com) Maersk’s ports arm, APM Terminals, said it began temporary operations at Balboa on February 23, 2026, after the Panamanian government announced a transition. APM Terminals said the temporary operating period is 18 months. (maersk.com) (apmterminals.com) The dispute reaches beyond one terminal because Balboa and Cristóbal sit at the Pacific and Atlantic ends of the Panama Canal. Panama’s comptroller said in January 2025 that it had opened an audit of Panama Ports Company covering the 2014-2024 period and the concession terms for both ports. (contraloria.gob.pa) Panama’s Supreme Court then annulled the concession in late January 2026, according to reporting by Euronews citing the court’s ruling and the prior audit. The court action targeted the concession framework that had allowed CK Hutchison’s unit to run the ports since 1997 and had been extended in 2021. (euronews.com) (contraloria.gob.pa) The legal fight also collides with a much larger ports sale announced on March 4, 2025. CK Hutchison said BlackRock, Global Infrastructure Partners and Terminal Investment Limited agreed in principle to buy its 90% interest in Panama Ports Company and an 80% effective interest in 43 ports with 199 berths in 23 countries. (ckh.com.hk) CK Hutchison said the aggregate enterprise value for the portfolio, including the Panama ports, was $22.8 billion. The company also said the Panama transaction would proceed separately, subject to confirmation by the Government of Panama and other approvals. (ckh.com.hk) That structure left the Panama assets exposed when the concession was struck down and the government installed interim operators. Reuters Connect reported that APM Terminals took Balboa and Terminal Investment Limited took Cristóbal after the government assumed control in February 2026. (reutersconnect.com) China’s regulatory pressure has been hanging over the wider sale since 2025. CK Hutchison said in a July 2025 filing that it wanted a “major strategic investor” from China in the buying group, after reports that China Cosco Shipping was in talks to join the consortium. (economictimes.indiatimes.com) (bloomberg.com) Panama Ports Company said on August 1, 2025, that the sale process was still ongoing and had not been concluded, while calling for consultations with Panama’s government. More than a year after the deal was announced, the ports at the canal are now being fought over in courtrooms, not sold at closing. (ckh.com.hk)