The government of Panama has taken control of two ports near the canal, whose concession, held by a subsidiary of the Chinese conglomerate CK Hutchison, was annulled by an irrevocable judicial ruling. The director of Panama's Maritime Authority Ports, Max Flórez, stated: "We have taken a decree of occupation that is a legal and legitimate measure for a transitional period." The government reported that during the transitional period, which will last up to 18 months, two operators will be in charge of managing the terminals. The Panama Maritime Authority (AMP) "today took possession of its ports and will guarantee" the operability of the Balboa (Pacific) and Cristóbal (Atlantic) terminals, through a "decree of occupation," said the General Director of Ports, Max Flores, at a press conference. The ports of Balboa and Cristóbal are two of the five that operate around the navigable passage and in 2025 moved 3.77 million containers, representing 38% of Panama's port system. The decree of occupation "is a legal and legitimate measure" and does not imply the expropriation of the equipment and machinery of Panama Ports Company (PPC), a subsidiary of CK Hutchison, explained both Flores and Alberto Alemán Zubieta, former administrator of the Canal and appointed by the government to coordinate the transition. "This is what is called an occupation to guarantee that port operations can continue," he pointed out. He stated that the goal is to seek an orderly transition that guarantees, above all, the labor stability of the port workers, mostly Panamanians, as well as provide certainty to shipping companies, users, and companies that provide services in the terminals. "Panama will continue to provide the quality service that corresponds to us and that has been, coincidentally, the seal that Panama gives the world in managing our port system, which is truly unique in the world," he maintained. In parallel, the board of directors of the Panama Maritime Authority will approve the plan for the transitional operation of both terminals, while the process of selecting the definitive operators advances, with the objective of safeguarding the best interests of the country. As context, on January 29, the Full Court declared unconstitutional the law that approved the contract granted to PPC and annulled the 2021 extension. The Panama Maritime Authority took possession of the Balboa and Cristóbal ports and assumed operational control of both terminals, following the execution of the ruling that declared the concession held by Panama Ports Company (PPC), a subsidiary of the Hong Kong-based CK Hutchison group, unconstitutional. "The Panama Maritime Authority today took possession of its ports and will guarantee the continuity of the operation. Operations were developing with apparent normality, although the outer gates were closed. Part of the main managers of PPC have left the port in recent weeks, according to a source familiar with the process. Panama's Supreme Court annulled the concession to PPC after two lawsuits filed in July by the Comptroller General, Anel Flores, who described the contract as 'predatory' and harmful to the nation's interests. PPC reported on February 3 the start of an arbitration against the Republic of Panama before the International Chamber of Commerce (ICC), based in Paris, without initially specifying the amount. "It is recognized that the equipment belongs to the company PPC," stated Alemán Zubieta. The AMP will approve this same Monday a transitional operation plan with one operator in both terminals for a period of up to 18 months. APM Terminals, a subsidiary of the Danish Maersk, and Terminal Investment Limited (TiL), the terminal arm of the Mediterranean Shipping Company (MSC), will temporarily operate the two ports. "We have sought for the transitional administration the operators that have the load. In the case of the Pacific, it will be APM Terminals and in the case of the Atlantic, TiL," revealed Alemán Zubieta. The plan will be presented to the Cabinet of Government for its approval. Initially, the Government had informed that the transitional operation would be in the hands of the Maersk subsidiary. This stage will develop "until" a process of selection of the definitive operators is carried out, "caring for the best interests of the country," said Flores. THE MINISTRY OF LABOR GUARANTEES LABOR STABILITY The Minister of Labor, Jackeline Muñoz, guaranteed the labor stability of the workers and assured that "there will be no layoffs." EFE verified that inside the Port of Balboa, the workers wore Hutchinson Ports uniforms and that the signs with the PPC logo remained visible. With the publication of the ruling in the Official Gazette, the decision became final and the concession lost its legal validity. Last week, the advisor and spokesman Alejandro Kouruklis indicated that the claim amounts to 2,000 million dollars.
