Panama formally announced in its official gazette a Supreme Court decision that annuls the concession contracts for two major terminals serving the Panama Canal corridor. The publication completes the legal process that strips Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, of the Balboa and Cristobal terminal concessions it had operated for over 20 years.
Following the gazette publication, the Panama Maritime Authority (AMP) issued a decree taking possession of both ports to ensure uninterrupted port operations. Alberto Aleman Zubieta, who heads the technical team overseeing the handover, said the seizure of operational control was intended to keep services running smoothly while administrative arrangements are implemented.
Aleman Zubieta told a press conference that the AMP will present two distinct contracts to its Board of Directors - one covering the Port of Balboa and a separate contract for the Port of Cristobal - rather than a single combined agreement for both terminals. That procedural separation is part of the immediate transition plan now that the court ruling is final upon publication.
Maersk's APM Terminals did not offer an immediate comment on the publication. Early in February, Panamanian President Jose Raul Mulino indicated the government would move to formalize an agreement with APM Terminals Panama, the local arm of the Danish shipping group, to manage and control the terminals once the court decision became legally binding. Mulino said the interim management by APM Terminals would continue while the state develops a new long-term concession framework to be awarded at a later date.
Political analyst Jose Stoute commented on the legal effect of the gazette publication, noting that "The moment the official gazette publishes the court's ruling Panama Ports loses control of the ports." The statement underscores the administrative finality that publication confers under Panamanian procedure.
The court ruling was issued in late January and has taken on added attention because it occurs against the backdrop of intensifying U.S.-China competition over strategic global trade routes. The development has been portrayed in some quarters as a geopolitical gain for Washington, given ongoing efforts by U.S. officials to limit Chinese influence in and around the Panama Canal, which handles roughly 5% of global maritime trade.
With the AMP in temporary possession and APM Terminals poised to step in for operational management, Panama is now working toward a new concession process for long-term control of the Balboa and Cristobal terminals. The immediate focus for authorities remains uninterrupted port operations and the administrative steps required to finalize interim contracts for each terminal.