Panama Ports Company S.A. (PPC), a subsidiary of CK Hutchison, has commenced arbitration proceedings against the Republic of Panama, filing the case on 3 February 2026 under the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce.
The move follows what PPC described as a year-long campaign by the Panamanian State specifically targeting the company and its concession contract, while other port sector contracts were not subjected to similar actions. PPC said the campaign culminated in recent measures that it considers to pose serious and imminent harm to its operations.
According to the company, extensive efforts were made over the past year to consult with state authorities and avoid arbitration. While continuing to operate the ports and cooperate with the government, PPC said it repeatedly raised concerns and sought clarification through formal communications, but these requests were routinely disregarded.
The arbitration is based on the concession contract and the legal framework established nearly three decades ago, which PPC described as providing long-term legal certainty. The company alleges that Panama has breached both the concession contract and applicable law, and is seeking extensive damages based on financial assessments, along with other relief it considers necessary. PPC and its investors said they reserve all rights.
As background to the dispute, PPC pointed to a judicial press statement issued late on 29 January 2026 regarding a Supreme Court ruling declaring Law No. 5 of 16 January 1997 unconstitutional, along with other related legal instruments. PPC said the ruling has not yet been published or entered into force and runs counter to previous Supreme Court decisions concerning similar contracts.
Following the press statement, the Panamanian State took steps toward assuming control of PPC’s operations, including site visits and requests for unrestricted access to facilities, commercial and intellectual property, information, and employees. These actions were linked to an unpublished court ruling and a port transition plan coordinated among state authorities.
PPC said it has continued to manage port operations and engage with government representatives, while requesting access to the transition plan and opportunities for consultation.
The company highlighted that, under CK Hutchison ownership, significant investments have been made in infrastructure, technology, and workforce development, generating thousands of direct and indirect jobs and contributing to Panama’s role as a global port and logistics hub.
Despite the initiation of arbitration, PPC reiterated its call for clarity and dialogue with the Panamanian State to seek a resolution to the dispute.
