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The Panamanian government has appointed APM Terminals to run the two facilities operated by Hutchison-owned Panama Ports Company (PPC) on a temporary basis, following the annulment of PPC’s concession agreement.
The country’s Supreme Court last week ruled the concession agreement extension signed with PPC in 2021 “unconstitutional”, paving the way for it to force the departure of the company from the ports of Balboa, on the Pacific Ocean, and Cristobal, at the Atlantic entrance to the canal.
In the wake of the ruling, the Panama Maritime Authority moved quickly to reassure carriers and customers that the ports would continue to function.
“The Panamanian state has activated a technical operational transition plan aimed at ensuring the continuity of port activities at the ports of Cristóbal and Balboa.”
As a result, it intends to appoint Maersk’s terminal operating arm, APM Terminals, to assume temporary operations at the ports. APMT does not currently manage a port in the country, although it did acquire the Panama Canal Railway Company last year.
“In compliance with the applicable legal processes, the government of the republic of Panama will, in due course, rely on the specialised support of APM Terminals as a temporary administrator during a transition period. APM Terminals is among the world’s most trusted port operators, making it a suitable choice to assume this responsibility.
“As the owner of the ports, Panama guarantees the uninterrupted operation of the national port system. Activities are proceeding normally, without interruptions, and continue to deliver optimal levels of productivity, efficiency, and service quality for shipping lines and their customers,” the Panama Maritime Authority explained.
In a televised address to the country on Saturday, Panama president Jose Mulino said he hoped Hutchison Ports would “collaborate” with the process.
In response, APM Terminals confirmed “its willingness to assume the temporary operation of both terminals”.
However, it also added: “APM Terminals emphasize that any operational entry to the terminal will be carried out in full accordance with all legal requirements and procedures established by the law.
“This can only take place once Panama’s Supreme Court of Justice ruling becomes final and binding, a timeline that is outside the company’s control.”
Meanwhile, the country is also pressing ahead with the development of two entirely new container terminals after the Panama Canal Authority (ACP) published the projects’ pre-qualification documents for potential bidders last Friday.
The two terminals, one on the Atlantic coast and one on the Pacific coast, are expected to together add 5m-6m teu of annual handing capacity to the country’s port capacity “and strengthen Panama’s position as a globally competitive intermodal hub”.
Last October, the ACP held a meeting with prospective operators of the new terminals, which was followed by a series of further meetings to “collect technical feedback, validate market assumptions, and refine the documentation supporting the selection process.
“As part of the market engagement process, the Panama Canal Authority held individual meetings with representatives from APM Terminals, Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited, ONE, and Evergreen,” it said.
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