APM Terminals has expressed its willingness to temporarily assume the operation of the terminals of Balboa and Cristóbal in Panama, following the announcement by President José Raúl Mulino regarding the situation of these facilities. The statement comes after the Supreme Court of Panama annulled the concessions held by Panama Ports Company (PPC), a subsidiary of Hutchison Ports Holdings, which operated the Balboa terminal on the Pacific side and the Cristóbal terminal on the Atlantic side of the Panama Canal.
The company, which is the terminal arm of Maersk, has indicated that its goal is to mitigate any risk that may affect essential services for regional and global trade, as well as to provide support to the logistics center of Panama. APM Terminals operates 60 terminals in 34 countries.
The company has emphasized that any operational entry into the terminals will be carried out in full compliance with all legal requirements and procedures established by law. It has added that this can only take place once the resolution of the Supreme Court of Justice of Panama becomes final and binding, a timeline that is beyond the company's control.
APM Terminals has also declared that it is not involved in the ongoing legal proceedings and plays no role in decisions related to the short or long-term structure or future management of the terminals of Balboa and Cristóbal. Any actions taken by the company will be guided by technical criteria, the integrity of the supply chain, and the public interest.
During a press conference held on Friday, President Mulino assured that the country's ports would continue to operate without interruptions, despite the Supreme Court's decision to annul the contracts of PPC. According to his statements, APM Terminals Panama has expressed its willingness to temporarily assume the operation of the terminals of Balboa and Cristóbal, following a transition period during which the current operator would remain in place. Mulino added that conversations have been held with several companies.
The Panamanian president stated that the measure with APM Terminals Panama would only be activated once the ruling of the Supreme Court of Justice becomes enforceable, until a new concession is granted following an open and participatory process. Mulino has instructed the Panama Maritime Authority to meet immediately with PPC and coordinate the next steps.
The judicial decision has not been well received by China. According to the Chinese state agency Xinhua, the spokesman for the Chinese Ministry of Foreign Affairs, Guo Jiakun, has stated that the Asian country will take all necessary measures to safeguard the legitimate rights and interests of Chinese companies.
The Supreme Court of Justice of Panama has declared unconstitutional Law No. 5 of January 16, 1997, a document that established the basis for the entry of Panama Ports Company into the ports of Balboa and Cristóbal. The subsidiary of CK Hutchison has described this fact in a statement as the latest episode of a campaign by the Panamanian government that has been affecting PPC and its investor for more than a year, including a series of actions directed against the concession and the company itself.
Panama Ports Company maintains that the resolution lacks legal basis according to the available information. Due to the campaign affecting PPC and its investors, the company and they permanently reserve all their rights, including the possibility of resorting to legal proceedings both nationally and internationally.
The decision of the Panamanian judiciary comes during negotiations for the sale of CK Hutchison's assets to the MSC-Blackrock consortium, a business in which the entry of the Chinese shipping company Cosco had been proposed. In this context, U.S. President Donald Trump had already expressed opposition to Chinese control of the Panama Canal, citing interference from the Asian country over the waterway.
The situation generates uncertainty about the future of port operations at two strategic points of global maritime trade. The terminals of Balboa and Cristóbal are fundamental facilities for the movement of goods between the Pacific and Atlantic oceans, playing a significant role in trade routes between Asia, America, and Europe.