The Panama Maritime Authority (AMP) has formalized two separate contracts to ensure the operational continuity of the container terminals at the ports of Balboa and Cristóbal. APM Terminals, a subsidiary of A.P. Moller-Maersk, will temporarily operate the port of Balboa on the Pacific coast, while TIL Panama, belonging to Terminal Investment Limited (TiL) of the MSC group, will assume management of the port of Cristóbal on the Atlantic coast for a period of up to 18 months.
The measure is part of the process initiated after the publication in the Official Gazette on February 23 of the ruling by the Supreme Court of Justice of Panama that annulled the concession of Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings. On the same day, state authorities took physical, administrative, and operational control of both terminals. The judicial decision, initially known in January, originated from two lawsuits filed by the General Comptroller of the Republic, Anel Bolo Flores, who questioned the legality of the 25-year concession held by PPC, arguing that it contained serious irregularities and was detrimental to national interests.
APM Terminals announced that it has begun its temporary operations at the port of Balboa once the ruling was published in the Official Gazette, which enabled the State to take control of the terminals and their assets. Marliz Bermúdez, executive director of APM Terminals Panama, stated that during this initial stabilization phase, the priority is to ensure the continuity and reliability of the Panamanian logistics hub, protect cargo, and ensure the safety of all staff. "This process requires speed and precision so that the port can gradually resume operations once the installation of the system is completed, along with other operational, auditing, training, and verification tasks," said the director, who reaffirmed the company's commitment to Panama.
The stabilization phase will prioritize the maintenance of staff through a business subrogation process. The company will implement contingency measures to maintain the delivery of containers and access operations while training personnel in new procedures. Among its plans is the migration of the terminal's operating system to Navis N4, the regulation of container flows during the transition, and regular communication with clients and shipping companies. In parallel, it will conduct a complete inventory and technical evaluation of cranes, equipment, and systems, as well as a review of processes, contracts, and operational protocols to define short-term maintenance needs.
CK Hutchison indicated that representatives of the government accessed the facilities of Balboa and Cristóbal without prior notice, communicated to PPC the termination of the concession, ordered the cessation of operations, and instructed employees to comply with the orders of state authorities under threat of criminal actions. The company considers that the Supreme Court ruling, the executive decree, and the takeover are contrary to the law and intends to exercise all available legal actions, both nationally and internationally. Hutchison Port Holdings had already warned A.P. Moller-Maersk that any attempt to operate the ports of Balboa and Cristóbal without its consent could lead to legal actions against the company.