Panama City, Feb 23 (EFE).- Panama’s government took control Monday of two Canal-adjacent ports after revoking the concession held by a subsidiary of the Chinese conglomerate CK Hutchison via a final court ruling.
The Panama Maritime Authority (AMP) “took possession of its ports today and will guarantee” the operation of the Balboa (Pacific) and Cristóbal (Atlantic) terminals through an “occupation decree,” said Max Flores, director general of Ports for that state institution, at a press conference.
The ports of Balboa and Cristóbal are two of the five ports by the waterway, which in 2025 handled 3.77 million containers, 38% of the total for the Panamanian port system.
The occupation decree “is a legal and legitimate measure” and does not imply expropriation of the equipment and machinery of Panama Ports Company (PPC), a subsidiary of CK Hutchison, explained both Flores and Alberto Alemán Zubieta, former administrator of the Panama Canal, appointed by the government to coordinate the transition at the ports.
The AMP, the state entity responsible for ports in Panama, will approve on Monday “a plan for transitional operation with one operator at both terminals” for a period of up to 18 months.”
APM Terminals, a subsidiary of Denmark’s Maersk, and Terminal Investment Limited (TiL), the terminal arm of Mediterranean Shipping Company (MSC), will temporarily operate the two ports.
Initially, the Panamanian government had reported that the transitional operation of both ports would remain in the hands of the Maersk subsidiary.
This transitional operation will continue “until” a “selection process for the definitive operators” for each port is carried out, “taking into account the best interests of the country,” said Flores.
Labor Minister Jackeline Muñoz guaranteed job stability for workers at both ports and said that “there will be no layoffs.”
EFE was able to verify that workers inside the Port of Balboa were wearing Hutchison Ports uniforms. There are also signs with the PPC logo, and everything was operating normally, although the external gates to the facility were closed.
Some of PPC’s top managers have left the port in recent weeks, according to a source familiar with the process who spoke to a small group of journalists, including EFE.
The Panamanian Supreme Court annulled the concession to PPC in response to two lawsuits filed in July by Panama’s Comptroller General, Anel Flores, against the contract, which he described as “unfair” and harmful to the nation’s interests.
PPC reported on February 3 that it had initiated arbitration proceedings against the Republic of Panama at the International Chamber of Commerce (ICC) “under the concession contract” and in accordance with the rules of that Paris-based body, without specifying the amount of the claim, which, according to the company’s advisor and spokesperson, Alejandro Kouruklis, last week amounts to 2 billion dollars. EFE
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