Panama has officially cancelled key port concessions held by a subsidiary of Hong Kong-based CK Hutchison, paving the way for Maersk and Mediterranean Shipping Company (MSC) to temporarily take over operations.
The decision was published in the government’s official gazette on Monday, finalising a Supreme Court ruling that annulled the contracts for the Balboa and Cristobal terminals near the Panama Canal. The ports had been operated by Panama Ports Company, a CK Hutchison unit, for nearly 30 years.
Following the ruling, the Panama Maritime Authority (AMP) took control of the two ports to ensure operations continue without disruption. The government has approved temporary concessions of up to 18 months. Under the arrangement, APM Terminals Panama, a Maersk subsidiary, will operate the Balboa terminal, while TIL Panama, part of MSC, will manage Cristobal.
CK Hutchison did not immediately comment. Previously, the company said it had notified Panama of a dispute under an investment-protection treaty and warned of possible legal action if any takeover proceeds without its agreement. It has also indicated it may seek international arbitration to challenge the court’s decision.
The move could complicate CK Hutchison’s proposed US$23 billion global port sale to a consortium led by BlackRock and MSC, which includes the Panamanian terminals.
The ruling comes amid heightened US-China tensions over strategic trade routes. US President Donald Trump has called for reducing Chinese influence around the Panama Canal, a key waterway that handles about 5% of global maritime trade.
Panamanian President Jose Raul Mulino said the temporary contracts are a legal mechanism to maintain port operations while the government works on a new competitive concession framework. He stressed that the move does not amount to expropriation and assured that port operations and jobs will not be affected during the transition.
Maersk has not yet issued a statement.
