Danish shipping major AP Møller-Maersk and Switzerland-based Mediterranean Shipping Company (MSC) have assumed operational control of two strategic ports along the Panama Canal, following the annulment of the previous concession held by Hong Kong conglomerate CK Hutchison Holdings.
The Government of Panama confirmed that operations at the Balboa (Pacific side) and Cristóbal (Atlantic side) ports were formally transferred on Monday after the Supreme Court nullified Hutchison’s long-standing contract. The ruling followed legal challenges dating back to 2021 and a 2025 government audit that alleged contractual irregularities.
Under an “occupation decree” issued by President Raúl Mulino, the state has temporarily assumed control of port assets — including cranes, vehicles, IT systems, and software — to ensure uninterrupted operations until a fresh concession is awarded within 18 months.
“This does not imply any expropriation of these assets but their use to guarantee operation of the ports until their value can be determined,” Mulino said, describing the decree as an exceptional legal tool.
As part of the interim arrangement, APM Terminals, a unit of Maersk, will manage the Balboa port, while MSC’s port operations arm will oversee Cristóbal. Marliz Bermúdez, CEO of APM Terminals Panama, stated that the company’s immediate priority is to ensure operational continuity while implementing a new operating system to progressively stabilise port activities.
Hutchison, which had operated the terminals for decades, said it ceased operations following the court ruling and termed the government’s move “forceful” and “unlawful.” The company has initiated arbitration proceedings against Panama.
The development also carries geopolitical undertones. MSC was previously part of a consortium — alongside BlackRock — that agreed to acquire a 90 per cent stake in the unit operating the two ports in a $23 billion deal that drew praise from former US President Donald Trump. However, Beijing later pushed for greater participation by China’s state-owned shipping major Cosco, complicating the transaction.
Panama has appointed Alberto Alemán Zubieta, former administrator of the canal, to lead a technical transition team overseeing port operations during the interim phase.
President Mulino reiterated that the upcoming tender process would be conducted with “transparency and humility,” aiming to restore investor confidence and safeguard Panama’s international standing. Labour Minister Jackeline Muñoz assured that there would be no layoffs during the transition.
The takeover marks a significant shift in control of two critical gateways along the Panama Canal, underscoring both the economic and geopolitical importance of the waterway in global trade.
