Maersk Unit Takes Over CK Hutchison Panama Ports After Court Ruling
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
The Port of Balboa at the Panama Canal in Panama City, Jan. 30, 2026. Photo: VCG
Panama has appointed a unit of Danish firm Maersk to temporarily run two strategic ports previously operated by CK Hutchison Holdings Ltd., following a Supreme Court ruling that declared the Hong Kong conglomerate’s contract unconstitutional.
The Panama Maritime Authority described the appointment of A.P. Moller (APM Terminals) to manage the Cristobal and Balboa ports as a “technical operational transition plan” designed to ensure uninterrupted global logistics.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Panama appointed Maersk's APM Terminals to temporarily run Cristobal and Balboa ports after annulling CK Hutchison's contract due to a Supreme Court ruling.
- The move escalates U.S.-China tensions, with Panama citing "public interest" and CK Hutchison threatening legal action.
- Legal experts warn prolonged temporary management could amount to "indirect expropriation," raising potential for international arbitration.
AI generated, for reference only
Who’s Who
- Maersk
- Maersk, a Danish firm, through its unit APM Terminals, has been appointed to temporarily manage Panama's Cristobal and Balboa ports. This comes after the Supreme Court ruled the previous operator's contract unconstitutional. Maersk, a global shipping giant with strong ties to both China and the US, is seen as a compromise solution amidst heightened US-China tensions under the Trump administration.
- CK Hutchison Holdings Ltd.
- CK Hutchison Holdings Ltd. (referred to as CK Hutchison) is a Hong Kong conglomerate whose subsidiary, Hutchison Ports PPC (PPC), previously operated two strategic Panamanian ports. A Supreme Court ruling declared their contract unconstitutional, leading to the temporary appointment of Maersk to run the ports. CK Hutchison had planned to sell these ports in March 2025. The company is currently involved in a dispute over the annulled concession, with potential international arbitration.
- A.P. Moller
- A.P. Moller (APM Terminals) is a unit of the Danish firm Maersk. It has been temporarily appointed by Panama to run the Cristobal and Balboa ports, which were previously operated by CK Hutchison Holdings Ltd. This appointment follows a Panamanian Supreme Court ruling that deemed CK Hutchison's contract unconstitutional. A.P. Moller is described as a compromise solution, acceptable to all parties, given Maersk's global shipping presence and ties to both the Chinese mainland and the U.S.
- APM Terminals
- A.P. Moller (APM Terminals), a unit of Danish firm Maersk, has been appointed by Panama to temporarily manage the Cristobal and Balboa ports. This decision follows a Supreme Court ruling that annulled CK Hutchison Holdings Ltd.'s contract. APM Terminals will ensure uninterrupted global logistics during this "technical operational transition plan," mitigating risks to regional trade.
- Hutchison Ports PPC
- Hutchison Ports PPC (PPC) is a subsidiary of CK Hutchison, 90% owned by the port arm and 10% by the Panamanian state. It previously held the concession to operate Cristobal and Balboa ports in Panama since 1997, which was renewed for 25 years in 2021. Panama's Supreme Court annulled its contract, leading to a temporary handover to Maersk.
- Haiwen & Partners
- Haiwen & Partners is a law firm, and Liu Yang, a partner in their Hong Kong office, provided expert commentary on the dispute over the Panamanian ports. Liu discussed the implications of a "temporary manager" appointment and the concept of "indirect expropriation." He also highlighted how the case exemplifies geopolitical shifts affecting international contracts.
AI generated, for reference only
What Happened When
- March 2025：
- CK Hutchison planned to sell the ports among 43 international assets.
- July 2025：
- President Mulino signaled that the government would reclaim the port operating rights if the courts invalidated the renewal.
- Jan. 29, 2026：
- Panama’s Supreme Court annulled the concession held by Hutchison Ports PPC.
- By Feb. 2, 2026：
- PPC had not responded to Caixin’s request regarding the handover to APM Terminals.
AI generated, for reference only
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新