The claims arise from a ruling by Panama’s Supreme Court, which declared PPC’s concession agreements for the Balboa and Cristobal container terminals unconstitutional. Following that decision, Panamanian authorities assumed control of both terminals last month.
CK Hutchison characterizes the seizure as unlawful and has initiated arbitration proceedings under the Rules of the International Chamber of Commerce (ICC) Court of Arbitration.
In a submission dated 24 March 2026, PPC supplemented its claims, citing the State’s extraordinary executive measures—including the forcible takeover and occupation of the terminals, the unlawful seizure of proprietary and legally protected documents, and a broader pattern of misconduct spanning over one month. PPC contends that these actions represent the latest escalation in a sustained campaign against the company, ongoing for more than a year. The statement further notes that the Republic of Panama has declined to coordinate with PPC on matters relating to access to its assets or compensation, while continuing to issue publicly inaccurate statements concerning PPC and its property.
The newly added claims increase PPC’s total asserted damages to over USD 2 billion.
CK Hutchison confirmed that Panama has yet to submit its initial response to the arbitration. According to the company, Panama has explicitly acknowledged its failure to retain legal counsel—a fact it has invoked to justify procedural delays. CK Hutchison warns that such conduct sends a troubling signal to foreign investors, as Panama seeks not only to impede the arbitration’s progress but also to implead third parties not bound by the underlying concession agreements—actions PPC had previously cautioned against. PPC reserves all rights to respond to any submissions or arguments advanced by Panama in the proceedings.
Panama has provisionally assigned operational responsibility for the Balboa and Cristobal terminals to APM Terminals (a subsidiary of Maersk) and Terminal Investment Limited (TiL, a subsidiary of MSC), respectively, for an interim period of 18 months.
Resource.: https://mp.weixin.qq.com/s/ytD-vHc-lZRrAw6n0P0fJg