The operating rights of the two major Panama Canal ports have changed, and Maersk Terminals has been temporarily taken over

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

The Supreme Court of Panama ruled on January 29 that the long-term operating concessions of Hong Kong-based CK Hutchison’s subsidiaries at the ports at both ends of the Panama Canal (Port of Balboa and Port of Cristobal) were unconstitutional.

In response to this verdict, the President of Panama immediately publicly stated that the daily operations of the two major ports would not be interrupted. The government has made temporary arrangements, and APM Terminals, a terminal operating company under the Maersk Group, will be temporarily managed. The Panama Maritime Authority will coordinate and promise that there will be no layoffs in the process.

This ruling has caused widespread concern and concern in the port shipping industry. An industry insider said anonymously that international media had reported the ruling before it was announced, which was surprising. The person further pointed out that the judgment raises questions about the legal protection environment for Panama’s investments.

Hutchison Ports Panama Company (PPC), which has operated the above-mentioned ports for nearly three decades, later issued a statement in response. PPC stated that its concession contract originated from an open and transparent international bidding process. The company has always complied with all contractual and legal obligations, including accepting state audits, and has always maintained cooperation and transparency. The statement emphasized that during its 28 years of operation, PPC and its investors have invested more than US.8 billion in infrastructure, technology and human resources development, and the scale of investment far exceeds that of other port operators in the country. These investments have created a large number of jobs, helped Panama grow into an internationally recognized logistics hub, attracted major global shipping companies, and had a broad positive impact on the national economy.

PPC pointed out in the statement that based on the available information, the ruling lacks sufficient legal basis. It not only damages the port company and its contractual rights and interests, but may also affect the livelihood of thousands of families who rely on the port industry, and poses a challenge to Panama’s legal certainty and business environment reputation.

APM Terminals, which was designated to take over temporarily, stated through foreign media that it is not a party to the legal proceedings and will only intervene and perform temporary management duties in accordance with the law based on technical standards, supply chain continuity and public interest considerations after the Supreme Court's ruling officially takes effect and becomes final and binding.