APM Terminals appointed interim administrator of Balboa and Cristobal after Panama's Supreme Court nullified Hutchison's concessions.
Maersk's APM Terminals has been appointed interim administrator of the Balboa and Cristobal terminals after Panama's Supreme Court nullified long-held concessions by Panama Ports Company, a unit of Hutchison Port, reports London's S&P Global.
The Panama Maritime Authority stated it expects an orderly transition from Panama Ports to APM Terminals, praising CK Hutchison Holdings as a globally recognized organization. It added that constructive collaboration is needed to maintain stability in the port system.
Panama Ports Company rejected the court ruling, claiming it lacks a legal basis and endangers thousands of families reliant on port activity. The company warned it may pursue national and international legal action against the government.
Panama Ports has operated Balboa and Cristobal since 1997 under a 25-year concession that was later extended in 2021. The Supreme Court has now ruled those agreements unconstitutional. The company did not confirm whether it would allow APM Terminals to assume control.
Hutchison had already agreed to sell the two terminals to a consortium of BlackRock's Global Infrastructure Partners and MSC's Terminal Investments Limited as part of a US$22.8 billion global sale of 43 terminals. The deal has faced opposition from Beijing.
The maritime authority did not specify when APM Terminals would take charge or how long the interim arrangement would last. APMT stated it would begin operations only once the Supreme Court decision becomes final, stressing its willingness to mitigate risks to trade and support Panama's logistics hub.
The authority assured that Panama guarantees operational continuity, with port services proceeding normally and maintaining productivity, efficiency, and service quality for shipping lines and clients.
