CK Hutchison Escalates Panama Canal Terminals Dispute

CK Hutchison has escalated its fight over the Panama Canal terminals at Balboa and Cristobal, warning A.P. Moller-Maersk that any move by APM Terminals to assume operations without consent would trigger legal action and damages claims. In a 12 February statement, the Hong Kong-headquartered operator confirmed it had formally notified Panama of a treaty dispute—elevating what began as a commercial disagreement into an investment protection claim under international law.

The warning followed Panama’s Supreme Court ruling in late January that Law No. 5 of 1997, the legal foundation for CK Hutchison’s nearly three-decade concession, was unconstitutional. Panama’s Maritime Authority subsequently announced APM Terminals (APMT) would serve as temporary administrator during a transition period. Hutchison’s subsidiary Panama Ports Company (PPC), which operates Balboa on the Pacific side and Cristobal at the Atlantic entrance, commenced International Chamber of Commerce arbitration on 3 February.

The dispute threatens to complicate CK Hutchison’s already-stalled US$22.8bn deal to sell its stake in 43 ports across 23 countries. Announced on 4 March 2025, the transaction would have seen BlackRock’s Global Infrastructure Partners take a 51% stake in the Panama terminals, with MSC’s Terminal Investment Limited (TiL) holding 49%. The broader portfolio was structured with TiL as lead investor.