Hong Kong firm seeks $2 billion for Panama acquisition of 2 key canal ports

Hong Kong — A subsidiary of the Hong Kong-based company, which lost control of two critical ports in the Panama Canal, said it is seeking $2 billion in damages from Panama for its “illegal” takeover of the ports.

Panama Ports Company, a unit of Hong Kong’s CK Hutchison Holdings, said in a statement on Friday that it was demanding the amount under international arbitration proceedings it had already initiated.

Panama’s government last week seized control of the ports of Balboa and Cristóbal at each end of the Panama Canal, a critical waterway for maritime trade, after the country’s Supreme Court previously declared a concession allowing the Panama Ports Company to run the pair of ports unconstitutional.

Panama Ports Company has operated the two ports since 1997 and renewed its concession for another 25 years in 2021. The Beijing and Hong Kong governments retaliated against Panama after seizing the two ports.

The two ports came into the spotlight early last year after US President Donald Trump accused China of “running” the Panama Canal.

After CK Hutchison announced a deal in March last year to sell dozens of its global ports, including two Panama ports, to a consortium including US investment firm BlackRock in a $23 billion deal, Beijing quickly protested and the deal has largely stalled in recent months.

CK Hutchison and Panama Ports Company “are unrepentant and they are not coming for some token settlement – they assert all their rights and damages because of the Panamanian state’s fundamental violations and anti-investor behavior,” Friday’s statement said.

In a statement, the Panama Ports Company said the Panamanian state had previously misrepresented the figure for compensation sought in press comments. Panama Finance Minister Felipe Chapman previously said the company was seeking $1.5 billion in compensation.

In a separate statement on Friday, CK Hutchison accused Panama of occupying two ports and taking property and personnel of the Panama Port Company “without transparency”. The company said it would continue to “resort to available national and international legal proceedings” on the matter.