Maersk to Take Temporary Control of Panama Canal Terminals After CK Hutchison Concession Cancellation

APM Terminals Panama, the port division of the Danish company Maersk, has offered to take temporary management of two key terminals of the Panama Canal — Balboa and Cristobal.

Cancellation of the Concession of the Hong Kong Company

The Supreme Court of Panama ruled on January 29 that the 25-year extension of the concession granted in 2021 to Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate CK Hutchison Holdings, was unconstitutional. The contract for managing the terminals, located at opposite ends of the canal, has been in effect since 1997.

The court's decision followed an audit by the Panama Chamber of Accountability, which revealed financial violations, unpaid payments, and accounting errors. PPC disagrees with the ruling and intends to litigate in Panama and other jurisdictions.

Maersk's Role and Government Statements

The proposal from Maersk is made to ensure the continuity of operations at the terminals. The President of Panama, José Raúl Mulino, confirmed that the ports will continue to operate without interruptions, and APM Terminals will take over management during the transition period until a new tender is held.

The Panama Maritime Authority has activated a continuity plan for technical maintenance to preserve the canal's capacity.

Geopolitical Context

The cancellation of the concession is linked to U.S. pressure to reduce Chinese influence in the region. U.S. President Donald Trump has repeatedly accused China of controlling the canal. The choice of Maersk, the largest carrier and holder of Pentagon contracts, confirms this trend.

Previously, CK Hutchison planned to sell the terminals to a consortium led by BlackRock for $22.8 billion, but the deal was postponed due to Chinese scrutiny. Maersk also acquired a railway along the canal.

China expressed outrage at the court's decision, while APM Terminals confirmed its interest in temporary management.