PANAMA CITY: Panama on Monday (Feb 23) published in its official gazette a Supreme Court ruling cancelling key port contracts held by a subsidiary of CK Hutchison, clearing the way for Maersk and the Mediterranean Shipping Company to take over temporarily.
The publication finalises the legal annulment of concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison, had operated for more than two decades.
The Panama Maritime Authority (AMP) has taken possession of both ports by decree to ensure uninterrupted operations, said Alberto Aleman Zubieta, head of the technical team overseeing the transition, after the ruling became final upon publication.
On Monday afternoon, the government said it approved two temporary concession contracts with AMP, lasting up to 18 months, for the operation of the Balboa and Cristobal terminals.
Maersk subsidiary APM Terminals Panama will operate the Balboa port, while TIL Panama, part of the Mediterranean Shipping Company, will run operations at Cristobal.
Panamanian President Jose Raul Mulino said the temporary contracts had been issued as “a legitimate tool that respects asset ownership”.
“Let me be clear, this does not imply an expropriation of those assets, but rather their use to ensure the operation of the ports until their real value is determined for the corresponding actions. I repeat, this is not an expropriation,” Mulino said in a televised address on Monday afternoon.
