CK Hutchison triggers arbitral battle as Panama court ruling threatens 30-year port operations

Shareholders were warned to exercise caution as CK Hutchison enters legal battle over Panama ports.

CK Hutchison Holdings said in a voluntary Hong Kong Exchanges and Clearing Limited (HKEX) and the Stock Exchange of Hong Kong (SEHK) filing that its 90%-owned subsidiary, Panama Ports Company, will begin arbitration against Panama.

The move follows a ruling by Panama’s Supreme Court of Justice declaring Law No. 5 of 16 January 1997, which authorised PPC’s concession to operate the ports of Balboa and Cristóbal, unconstitutional. The ruling is expected to take effect in early February 2026.

The law and its amendments had formed the legal basis for PPC’s operations at the two ports for nearly three decades.

CK Hutchison stated that the Supreme Court decision and any related actions by the Panamanian government are inconsistent with the concession contract and the applicable legal framework.

On 3 February 2026, PPC began arbitration under the Rules of Arbitration of the International Chamber of Commerce pursuant to the concession contract.

The company is consulting with legal counsel and reserves all rights to pursue additional national or international legal remedies.

The company also advised shareholders and potential investors to exercise caution when dealing in its shares or other securities.