CK Hutchison’s Panama Ports Company (PPC) has launched international arbitration seeking at least $2bn in damages after the Panamanian government moved to cancel its concession and seize control of the strategic Balboa and Cristóbal terminals at the two ends of the Panama Canal.

In a statement filed March 6, PPC said it has formally submitted claims under the ICC arbitration rules, accusing Panama of an “illegal national takeover,” “egregious breaches” of contract and “manifestly anti‑investor conduct.” The company warned it “will not give ground” and “will not accept symbolic compensation,” saying it will pursue “all rights and damages to which it is entitled.” PPC also said it is pursuing parallel local remedies and has asked Panamanian authorities to return documents and materials it says were unlawfully seized during the takeover.

The legal move follows a January ruling by Panama’s Supreme Court that declared the concession contract unconstitutional and a February 23 administrative decree that triggered the government’s takeover. Panama has already begun interim operational arrangements, with Maersk and MSC reported to be involved in temporary terminal operations while the dispute plays out.

PPC and its parent group have argued the government acted without proper consultation, occupying facilities, seizing assets and detaining paperwork. The firm has also filed an administrative appeal seeking review of the decree and is warning that the expropriation harms investor rights and undermines contractual stability.

The ports at Balboa and Cristóbal, situated on either end of the Panama Canal – have been run by CK Hutchison since 1997.