Panama provisionally appoints Maersk to operate key Panama Canal ports

The Panamanian government has temporarily appointed the Danish logistics company Maersk to operate two Panama Canal ports previously managed by Hong Kong-based shipping line CK Hutchison Holdings Ltd.

This change follows a Supreme Court ruling that declared the firm's operation of ports at both ends of the passageway unconstitutional.

Panama Ports Company (PPC), a subsidiary of the Asian firm, has operated the Panama Canal Balboa port on the Pacific Coast and the Cristóbal port on the Atlantic Coast since the 1990s. The contract was last renewed in 2021, extending the license for another 25 years.

A lawsuit seeking to cancel the contracts was filed in a Panamanian court last year, alleging constitutional violations and improper tax payments by the Hong Kong company.

In a statement, Maersk’s independent division, APM Terminals, confirmed that it is temporarily operating both terminals. The company said it would support continuity and “mitigate any risks that could impact essential services for regional and global trade.”

Ruling ends CK Hutchison’s Panama Canal tenure

According to a government statement, the decision reached last week found that the terms under which CK Hutchison's subsidiary, PPC, operates the ports are unconstitutional and invalid, news outlet CNBC reports.

The decision has been welcomed by US President Donald Trump, who has identified the Panama Canal as a top priority for the United States and has previously threatened military action to secure control over it, citing concerns over Chinese ownership.

Meanwhile, Beijing has expressed displeasure with the ruling.

China’s Foreign Ministry spokesman Guo Jiakun stated that China will take all necessary measures to protect the rights and interests of Chinese companies. He added that the ruling contradicts the laws governing Panama’s approval of the relevant franchises and that the business reserves its right to initiate legal proceedings.

PPC responded with a statement asserting that the ruling lacks legal basis and jeopardizes the company, its contract, the livelihoods of thousands of Panamanian families dependent on port activity, and the rule of law in the country.

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