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CK Hutchison takes Panama to arbitration after court voids canal port rights

Move comes after Beijing called ruling self-sabotaging and warned Panama would pay heavy political and economic price

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Hong Kong-based CK Hutchison Holdings has said it has launched arbitration proceedings to challenge the Panamanian court ruling. Photo: Sam Tsang
Ambrose Li,Jeffie LamandLeopold Chen
Hong Kong’s CK Hutchison has launched arbitration proceedings to challenge a Panama court ruling that nullified its right to operate two ports at the country’s canal, hours after Beijing warned that the Central American nation would pay a heavy political and economic price.

The conglomerate led by Hong Kong billionaire Li Ka-shing’s family on Wednesday said it strongly disagreed with the ruling by the country’s Supreme Court over the Panama Canal ports, which could take effect this month.

It said that its subsidiary, Panama Ports Company (PPC), had taken action against it.

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“On February 3, 2026, PPC commenced, and will pursue vigorously, arbitration proceedings against the Republic of Panama pursuant to the applicable concession contract and the Rules of Arbitration of the International Chamber of Commerce,” the company said.

“The group continues to consult its legal counsel and reserves all rights, including recourse to additional national and international legal proceedings in the matter.”

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In a separate statement on Wednesday, PPC laid out the legal grounds for the arbitration, citing a breach of contract by the Panamanian authorities.

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