CK Hutchison Suspends Panama Port Activities over ‘Unlawful’ Takeover Claim

Panama Ports Company (PPC) container terminals in Cristobal and Balboa, following a ruling by the Panama Supreme Court of Justice that declared the PPC concession unconstitutional. An Executive Decree issued by the President of Panama mandated the occupation of the terminals by the state, leading government representatives to arrive unannounced and assume control. PPC employees were instructed to comply with government directives, transfer out of PPC, and cease communications with the company, under threat of criminal prosecution, effectively giving the state full control of the facilities.

CK Hutchison described the takeover as the culmination of a campaign by the Panama State against PPC and the concession contract over the past year and labeled the ruling, Executive Decree, and termination of the concession as “unlawful.” The company is consulting with legal advisors to explore potential national and international legal actions against the Republic of Panama and relevant third parties. Previously, CK Hutchison had threatened legal action against Maersk’s APM Terminals if it assumed temporary operations of the terminals.

In the meantime, the Panama government has granted temporary operating rights for 18 months to APM Terminals for the Balboa terminal and to MSC’s TiL for the Cristobal terminal. APM Terminals has initiated a “stabilisation phase” at Balboa to ensure the continuity of Panama’s critical logistics hub while implementing a new terminal operating system. Operations are being progressively reactivated with minimal disruption, although no timeline has been provided for the completion of the stabilisation phase.

This development marks a significant shift in Panama’s port operations, with global shipping players closely monitoring the situation as the temporary operators work to maintain logistics efficiency and continuity at two of the country’s most strategic container terminals.