International Maritime

Panama has tapped Maersk’ s APM Terminals as interim operator of the Cristobal and Balboa ports. Nico De Pasquale Photography / Shutterstock. com

Panama Ports seeks‘ extensive damages’ over nixed terminal concessions

By Mark Szakonyi and Keith Wallis

A court ruling has effectively terminated CK Hutchison Holdings’ leases in the country, but the decades-long controversy over the Hong Kong-based firm operating two terminals adjacent to the Panama Canal is far from settled.

After Panama’ s Supreme Court ruled against Hutchison back in January, saying that the concessions were awarded without a bidding process, Hutchison and China began threatening the Panamanian government. In the meantime, Panama has tapped Maersk’ s APM Terminals as interim operator of the Cristobal and Balboa ports, which bookend the canal, until the concessions are re-bid. Hutchison had already agreed to sell the two terminals to a consortium of BlackRock’ s Global Infrastructure

Partners and Mediterranean Shipping Co. subsidiary Terminal Investments Limited( TiL) as part of a $ 22.8 billion sale of its 43 terminal operations worldwide.

But the deal has run into opposition from Beijing over ties between US President Donald Trump and BlackRock leadership.

Hutchison’ s Panama Ports Company( PPC) is seeking“ extensive damages” after launching arbitration proceedings against the government of Panama. The Chinese and Hong Kong governments blasted the ruling, with Beijing’ s Hong Kong and Macao Affairs Office warning Panama would“ pay a heavy price both politically and economically.”

The Supreme Court decision can only be delayed, not overturned, and legal proceedings such as those launched by PPC can linger for years and often go nowhere. The move appears to be more of an effort by Hutchison to show investors that it is exhausting all options even if there is no path forward.

The Supreme Court decision can only be delayed, not overturned.

Interestingly, a Supreme Court ruling in a separate case three years ago resulted in the closure of a major copper mine in Panama, although there seems to be developments underway that could result in the mine’ s reopening.

Just in time

The legal wrangle over PPC’ s concession and APM Terminals interim appointment came as the Panama Canal Authority( ACP) moves forward on developing two new container terminals at either end of the canal.

The ACP in January asked international terminal operators to pre-qualify to develop the common-user terminals, which will be built in Corozal at the Pacific entrance of the canal and Telfers lsland at the canal’ s Atlantic entrance at a total estimated cost of $ 2.6 billon.

APM Terminals was one of 12 terminal operators that had individual meetings in October with ACP officials to discuss the project. Others included Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, TiL, Ocean Network Express and Evergreen.

Several of those firms already run existing terminals in Panama. SSA Marine operates Manzanillo International Terminals, while Evergreen is concessionaire for Colon Container Terminal, both on the Atlantic side of the canal. Singapore’ s PSA operates its Panama International Terminal on the Pacific Coast.

The two new terminals are specifically aimed at boosting Panama’ s annual transshipment capacity to between 5 million TEUs and 6 million TEUs and strengthening its position as a globally competitive intermodal hub.

email: mark. szakonyi @ spglobal. com email: keithwallis @ hotmail. com

40 Journal of Commerce | March 2, 2026 www. joc. com