A cargo ship sails past the Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, March 13, 2025. Photo: VCG

The Panama unit of Hong Kong-based conglomerate CK Hutchison Holdings (CKHH) said that it filed an arbitration against shipping giant Maersk in relation to the takeover of the company's port terminals in Panama.

Panama Ports Company S.A. (PPC), an indirect 90-percent-owned subsidiary of CKHH, said in a statement released on Tuesday (local time) that "the arbitration is based on a long-term contract to facilitate a collaborative approach to business through the exclusive use of PPC port terminal operations in Panama and access to a range of PPC operational facilities and information."

However, "Maersk undermined the contract and aligned with the Republic of Panama in connection with its State campaign against PPC and scheme to replace it through a takeover that installed new port operators," the company said.

PPC said in the statement that on February 23, 2026, Panama expelled PPC from port operations through extreme executive measures, took over the port terminals, and entered into a pre-arranged concession contract for the Balboa terminal with a new operator that is affiliated with Maersk and has utilized PPC operational facilities and information.

The arbitration will be held in London. PPC will vigorously pursue its claims in the Maersk arbitration and its claims against Panama, as well as other rights and remedies, the company announced.

On March 6, the subsidiary of CKHH said in another statement that it already filed an international arbitration against the Republic of Panama seeking at least $2 billion in damages, a figure that has been misstated by the Panamanian State in press comments.

PPC also said that it had taken additional legal actions against the illegal takeover by the Panamanian State of the ports of Balboa and Cristóbal in Panama on and after February 23. 

On February 24, in response to a question saying that Panama's authorities had taken control of two ports on the Panama Canal from CK Hutchison, Chinese Foreign Ministry spokesperson Mao Ning said that "China's position on relevant Panamanian ports is clear. I believe you have noticed that the company concerned has issued a statement, saying that it will reserve all rights including to proceed legally. China will firmly protect the company's legitimate and lawful rights and interests."

A spokesperson for the Hong Kong Special Administrative Region on February 24 also reiterated that the earlier ruling by the Supreme Court of Justice of Panama, which declared the operation of the two Panamanian ports by the company concerned unconstitutional, disregarded facts and breached faith. The company concerned had already initiated and commenced arbitration proceedings.

Global Times