CK Hutchison Launches ICC Arbitration After Panama Court Rules Canal Port Concession Unconstitutional

CK Hutchison Holdings said Wednesday that its subsidiary, Panama Ports Company, has initiated arbitration proceedings against Panama after the Panamanian Supreme Court ruled that the concession allowing the company to operate ports on the Panama Canal was unconstitutional.

The arbitration was filed under the rules of the Paris-based International Chamber of Commerce (ICC) and will be administered by the ICC's independent International Court of Arbitration. Hutchison said it strongly disagrees with the court's decision and has begun seeking legal remedies through the international arbitration process. It is not yet clear what the timetable or outcome of the proceedings will be.

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)(ASSOCIATED PRESS)

Panama Assures Continuity While Tensions Rise

Panama's president moved quickly to reassure the public that port operations would continue without interruption despite the ruling. The Panamanian president’s office and commerce ministry did not immediately comment on the arbitration filing.

Beijing's Strong Reaction

The court decision drew a sharp response from Beijing. An office in charge of Hong Kong affairs in Beijing criticized the Panamanian ruling as legally unfounded and accused Panamanian officials of yielding to outside pressure. In a statement shared on the social platform WeChat, the office warned that Panama "will pay a heavy price both politically and economically" if it persists in what Beijing described as a wrongful course.

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)(ASSOCIATED PRESS)

Beijing Statement: "Panama’s authorities should recognize the situation and correct their course. If they persist in their own way and refuse to see reason, they will pay a heavy price both politically and economically!"

Commercial Fallout And A Complicated Sale Process

The dispute complicates CK Hutchison’s plan to sell its global port assets to a consortium that includes Global Infrastructure Partners (a BlackRock subsidiary) and Terminal Investment Limited. That planned sale has already drawn scrutiny amid U.S.-China tensions and a review by Chinese antitrust authorities.

Hutchison has operated terminals at both ends of the Panama Canal since 1997. The company previously said it was considering bringing a Chinese investor into the buyer consortium, a move some observers saw as an effort to address Beijing’s political concerns. It has not provided further public updates on that matter.

Cranes load a cargo ship at Panama Canal's Port of Balboa, managed by CK Hutchison Holdings, in Panama City, Friday, Jan. 30, 2026. (AP Photo/Matias Delacroix)(ASSOCIATED PRESS)

Terminal Investment Limited is chaired by Diego Aponte, and Hutchison’s co-managing director Dominic Lai has said Terminal Investment is the main investor in the buyer group. Observers say the episode highlights the dilemmas faced by Hong Kong-based companies that must navigate commercial decisions amid geopolitical tensions between Beijing and Washington.

Security And Sovereignty Concerns

Panamanian officials insist the government retains full sovereign control over the canal and that foreign port operations do not equate to control of the waterway. U.S. officials, however, including members of Congress, have framed foreign operation of Panama Canal terminals as a national security concern.

As the arbitration proceeds, key questions remain over how a ruling by the ICC tribunal might interact with Panama's domestic court decision and what political or economic consequences could follow if tensions between the governments escalate.