Panama Ports Company (PPC) has initiated international arbitration against the Republic of Panama on February 3, 2026, citing the applicable concession contract and the arbitration rules of the International Chamber of Commerce. This move comes in response to what PPC describes as "a campaign by the Panamanian state specifically targeting PPC and its concession contract, marked by a year of abrupt actions by the state that culminated in significant damages and imminent additional losses for PPC, while similar contracts in the port sector have not been subject to the same treatment." The arbitration also follows extensive efforts by PPC over the past year to consult and avoid disputes. While diligently managing port operations and cooperating with the Panamanian state, PPC has consistently conveyed its concerns about the state's campaign, seeking clarity and consultations in vain to prevent the need for arbitration. PPC has also noted its substantial investments in infrastructure, technology, and human capital, which have generated thousands of jobs and contributed to Panama's position as an international logistics hub. In closing, PPC has left the door open for dialogue, reiterating its willingness to continue negotiations with the Panamanian state to find a resolution to the conflict. The company asserts that Panama has breached its contractual and legal obligations, leading to this international dispute. PPC also stated that the compensation will be determined based on an evaluation of relevant financial data, along with other legal remedies, and that both the company and its investors reserve all their rights. The backdrop of the conflict includes the state's reversal of its long-held positions on the legal framework of the contract and its promotion of legal actions to invalidate the concession, which originated from an international tender.
