Li Ka-Shing’s Port Unit Starts Arbitration Against Panama Over Voided Port Deal
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The Port of Cristobal in Colon, Panama. Photo: Visual China Group
CK Hutchison Holdings Ltd. has launched arbitration proceedings against the Republic of Panama after the nation’s Supreme Court ruled that the concession contract for two strategic ports operated by the Hong Kong conglomerate is unconstitutional.
The company, backed by the billionaire Li Ka-shing family, disclosed in a filing strictly before the Hong Kong market opened on Wednesday that its subsidiary, Hutchison Ports PPC (PPC), initiated the action under the arbitration rules of the International Chamber of Commerce.
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- CK Hutchison Holdings is seeking arbitration against Panama after its port concession contract was ruled unconstitutional by Panama's Supreme Court.
- The dispute involves the Cristobal and Balboa ports; Hutchison Ports owns 90%, and Panama’s government owns 10%.
- Panama has appointed a Maersk subsidiary to temporarily manage the ports, with the court decision set to take effect in early February 2026.
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Who’s Who
- CK Hutchison Holdings Ltd.
- CK Hutchison Holdings Ltd. (长江和记实业有限公司) is a Hong Kong conglomerate, backed by the Li Ka-shing family. Its subsidiary, Hutchison Ports PPC, has initiated arbitration against Panama after the nation's Supreme Court ruled its port concession contract unconstitutional. The company operates the Cristobal and Balboa ports, with the Panamanian government holding a 10% stake.
- Hutchison Ports
- Hutchison Ports (和记港口信托) is a subsidiary of CK Hutchison Holdings Ltd., controlled by the Li Ka-shing family. It operates two strategic ports, Cristobal and Balboa, at opposite ends of the Panama Canal. The company is currently engaged in arbitration proceedings against the Republic of Panama due to a Supreme Court ruling that declared its concession contract unconstitutional.
- A.P. Moller-Maersk A/S
- A.P. Moller-Maersk A/S, also known as Maersk, is a Danish shipping and logistics company. A subsidiary of Maersk was appointed by the Panama Maritime Authority to temporarily manage the Cristobal and Balboa terminals. This appointment follows the Panamanian Supreme Court's ruling that the concession contract for the ports, previously operated by CK Hutchison Holdings, is unconstitutional.
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What Happened When
- 1997：
- Hutchison Ports PPC secured the original concession rights to operate the Cristobal and Balboa ports in Panama.
- 2021：
- The concession contract for the ports was renewed for an additional 25-year term.
- Monday, February 2, 2026：
- China’s foreign ministry stated that it would take all necessary measures to safeguard the rights and interests of Chinese enterprises.
- Wednesday, February 4, 2026 (strictly before the Hong Kong market opened)：
- CK Hutchison Holdings Ltd. disclosed that its subsidiary initiated arbitration proceedings against the Republic of Panama under the International Chamber of Commerce rules.
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