Panama has officially transferred temporary oversight of critical port terminals near the Panama Canal. A Supreme Court ruling, published Monday, nullifies long-standing contracts held by CK Hutchison's subsidiary, Panama Ports Company.
The Balboa and Cristobal terminals, operated by Panama Ports Company for over two decades, are now under the temporary control of the Panama Maritime Authority. This move ensures uninterrupted operations at these vital hubs.
Temporary concession contracts, valid for up to 18 months, have been awarded. APM Terminals Panama, a Maersk subsidiary, will manage the Balboa port, while TIL Panama, part of the Mediterranean Shipping Company, will operate the Cristobal terminal.
Panamanian President Jose Raul Mulino emphasized that the action is not an expropriation but a necessary measure to ensure port functionality. He stated that asset ownership remains respected and that the temporary arrangement will persist until a new, competitive concession framework is established. Port operations and employment are expected to remain unaffected.