Panama to Hire Legal Firm for USD 3.8 Million for Arbitration with CK Hutchison

The Government of Panama authorized the hiring of the international firm Hogan Lovells Cadwalader US LLP for a value of USD 3,887,350 to take on the country's legal representation in the international arbitration initiated by CK Hutchison Holdings Limited, headquartered in Hong Kong. The dispute originates from the termination of the concession operated by Panama Ports Company (PPC) over the ports of Balboa and Cristóbal.

CK Hutchison initiated international arbitration proceedings against the Republic of Panama in August over alleged breach of an investment protection treaty, claiming losses of USD 1.5 billion, according to Portal Portuario. According to Seatrade Maritime, this claim adds to a prior case before the International Chamber of Commerce (ICC) for USD 2 billion that Panama Ports Company itself had already been pursuing over the same dispute.

According to Portal Portuario, CK Hutchison maintained that in early 2025 Panama undertook a series of actions against its investments, including a new investigation, a shift in the legal stance that for three decades had upheld the concession, and a challenge to the constitutionality of the contract itself. On February 23, the Panamanian State took control of the Balboa and Cristóbal terminals, including property, equipment, technology, employees and documents, without offering compensation.

According to Seatrade Maritime, the termination of PPC's contract followed a court ruling that declared the contractual arrangement unconstitutional. Since February, APM Terminals, a Maersk subsidiary, has been managing the port of Balboa on an interim basis, while TiL, MSC's terminal arm, took charge of Cristóbal, both under a transitional contract of up to 18 months approved by the Panamanian Cabinet, set to expire in July 2027.