News / PPC ups damages claim as Panama port dispute escalates past $2bn 

© Robin Runck

Panama Ports Company (PPC) has expanded its arbitration claim against the Republic of Panama, warning damages have now “escalated beyond $2bn”, one month after the government’s seizure of its Balboa and Cristóbal terminals. 

In a statement issued yesterday, PPC said it had supplemented its case at the International Chamber of Commerce (ICC), citing “extreme executive actions”, the continued occupation of its assets and the alleged seizure of proprietary and legally protected documents. 

The move marks a significant escalation in a dispute that has already disrupted container flows through one of the world’s most critical maritime chokepoints. 

PPC said the updated filing reflects a month of “misconduct” by the Panamanian state following its February intervention, when authorities took control of the two canal terminals and handed temporary operations to APM Terminals and MSC’s terminal arm, TIL. 

The company claims the government has failed to coordinate on access to its property or compensation, while continuing to make “inaccurate statements” about PPC and its assets. 

Moreover, PPC criticised Panama’s handling of the arbitration process itself, noting the state has yet to file its initial response. According to the operator, Panama has cited its failure to appoint legal counsel as grounds for delay, while attempting to broaden the case to include additional parties. 

In unusually strong language, PPC warned the approach sent a “chilling signal to foreign investors”, accusing the government of deliberately slowing proceedings while continuing its domestic campaign against the company. 

The latest filing builds on PPC’s original claim for at least $2bn in damages following the termination of its long-standing concessions, which date back to 1997. Panama’s Supreme Court ruled in January that the agreements were unconstitutional and alleged some $1.3bn in unpaid profit-sharing. 

However, PPC has consistently argued the government’s actions – formalised under Executive Decree 23 – amounted to an unlawful expropriation of its business, equipment and data. 

The dispute is already having tangible effects on shipping operations. Earlier this month, Cosco suspended liner services to Balboa, widely interpreted as retaliation linked to the removal of Hong Kong-based CK Hutchison – PPC’s parent – from the terminals. 

With PPC now formally increasing its damages claim and accusing Panama of obstructing proceedings, the dispute appears set for a prolonged and increasingly high-stakes legal battle – one that could reshape both investor confidence in Panama and the competitive dynamics of global container trade.