Panama Maritime Authority controls two ports; Maersk and MSC to manage operations temporarily after CK Hutchison contracts were invalidated.
The Panama Maritime Authority has assumed control of two ports on the Panama Canal after contracts held by Hong Kong-based CK Hutchison were declared invalid, reported Reuters.
Logistics giant Maersk and Mediterranean Shipping Company (MSC) will manage operations on a temporary basis.
The government stated it approved two concession contracts with the authority lasting up to 18 months. APM Terminals Panama, a Maersk subsidiary, will oversee the Balboa terminal, while TIL Panama, part of Mediterranean Shipping Company, will operate Cristobal.
Panamanian President Jose Raul Mulino stressed that the move was not an expropriation. He indicated that the temporary arrangement was intended to ensure port operations continue until the assets' value is determined for future action.
