Panama on Monday published in its official gazette a Supreme Court ruling cancelling key port contracts held by a subsidiary of CK Hutchison, clearing the way for Maersk's APM Terminals to take over temporarily.

The publication finalises the legal annulment of concessions for the Balboa and Cristobal terminals near the Panama Canal, which Panama Ports Company (PPC), subsidiary of Hong Kong-based CK Hutchison, had operated for more than two decades.

The Panama Maritime Authority (AMP) has taken possession of both ports by decree to ensure uninterrupted operations, said Alberto Aleman ⁠Zubieta, head of the technical team overseeing the transition, after the ruling became final upon publication.

"Two separate contracts are being presented to the Board of Directors of the AMP – one for ⁠the Port of Balboa and one for the Port of Cristobal – instead of a single contract for both ports," Aleman Zubieta told a press conference.

Maersk did not immediately have a comment about the matter.

Early ⁠in February, Panamanian President Jose Raul Mulino said the government would move forward to formalise an agreement with APM Terminals Panama, a subsidiary of Danish shipping group Maersk, to manage and control the ports once the ruling became legally binding.

Mulino said the arrangement would remain in place while the state develops a new long-term concession framework to be awarded in the future.

in January, the country's supreme court had declared as "unconstitutional" the contract which had allowed PPC to manage the ports since 1997. Hutchison had asked the Panamanian government to enter into negotiations to allow it to continue operating the two terminals – to no avail.

PPC denounced the move as an "illegal takeover without transparency or coordination" and said Panama's actions were "confiscatory."

The Foreign Ministry had previously criticised the ruling, saying China will firmly protect the legitimate and lawful rights and interests of Chinese companies.

Foreign Ministry spokesperson Lin Jian had also said that remarks by US officials about the court ruling had revealed the “Cold War mentality” and “ideological bias” of the United States, adding that the international community is well aware of who is undermining international law under the guise of the rule of law. (Agencies)



Edited by Cecil Wong