A Hong Kong-based port operator has begun international arbitration proceedings seeking two billion dollars in compensation after Panama seized control of two key terminals at either end of the Panama Canal.

Panama Ports Company, a subsidiary of the Hong Kong conglomerate CK Hutchison Holdings, said it is pursuing damages through international arbitration after losing control of the Balboa and Cristobal ports, two facilities that sit on the Pacific and Atlantic entrances to the canal.

The company described Panama’s actions as an unlawful takeover of assets and operations that it had managed for decades.

The dispute follows a ruling by Panama’s Supreme Court declaring the company’s concession to operate the ports unconstitutional.

Acting on that ruling, the Panamanian government ordered the occupation of the terminals and assumed control of their operations, triggering an immediate response from the Hong Kong operator.

Panama Ports Company has run the Balboa and Cristobal facilities since nineteen ninety seven, playing a central role in the handling of cargo passing through one of the world’s most important maritime corridors.

The concession was renewed in two thousand twenty one for an additional twenty five years before the recent court decision overturned the agreement.

The ports occupy a strategic position along the canal, a critical route for global trade linking the Atlantic and Pacific oceans.

Their operations have drawn growing geopolitical attention in recent years as international competition for control over major maritime infrastructure intensified.

The dispute also intersects with a broader commercial transaction involving CK Hutchison’s global port network.

The company had previously announced plans to sell a large portion of its international port assets, including the two Panama terminals, to a consortium led by a major American investment firm as part of a multibillion dollar deal that has since stalled amid political scrutiny and regulatory uncertainty.

The canal ports became a subject of heightened international discussion after United States President Donald Trump publicly warned that China should not exert influence over such a strategic global waterway.

His administration emphasized safeguarding open and secure maritime trade routes as a priority for global commerce.

In statements issued after the takeover, the Hong Kong operator accused Panama of occupying port facilities and seizing property and documents without adequate transparency.

The company said it intends to pursue all available legal avenues and will seek full compensation for what it describes as severe breaches of investor protections.

The Panamanian government has previously indicated that the port concession’s cancellation followed legal findings about the constitutionality of the agreement, while officials continue to review the dispute as the arbitration process unfolds.

The case now moves into international arbitration, setting the stage for a complex legal battle over ownership rights, investment protections and the future control of two of the most strategically important commercial ports along the Panama Canal.