Maersk to Temporarily Run Panama Canal Ports

Danish shipping giant Maersk will temporarily take over operations of two key ports on the Panama Canal following the annulment of a long-standing concession held by Hong Kong-based CK Hutchison, the Panama Maritime Authority (AMP) said on Friday.

Panama’s Supreme Court on Thursday invalidated the contract, ruling that it showed a “disproportionate bias” in favour of the Hong Kong firm. The decision followed sustained political pressure, including repeated statements by US President Donald Trump alleging Chinese influence over the strategic waterway.

The canal handles around 40 percent of US container traffic and about five percent of global trade. Built by the United States, it was operated by Washington for nearly a century before control was transferred to Panama in 1999.

Under the new arrangement, APM Terminals—part of the Maersk Group—will act as a temporary administrator of the Balboa and Cristobal ports, located at either end of the canal. The ports were previously managed by Panama Ports Company (PPC), a subsidiary of CK Hutchison Holdings, under a concession originally granted in 1997 and renewed in 2021 for 25 years.

The concession was challenged last year by the comptroller’s office, which deemed it unconstitutional and alleged that Hutchison failed to pay $1.2 billion owed to the Panamanian state. PPC has rejected the claim, saying it paid $59 million to the government over the past three years and warning that the ruling threatens the livelihoods of thousands of Panamanian families.

The United States welcomed the court decision, while China said it would take all necessary steps to protect the legitimate rights of its companies. Analysts said the move could raise concerns among foreign investors about political pressure affecting strategic infrastructure projects in the region.

President Jose Raul Mulino said the canal would continue operating without disruption and confirmed a transition period ahead of a new concession process under terms favourable to Panama. No timeline was given.

APM Terminals said it was ready to ensure operational continuity and safeguard essential services during the interim period.

CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, had earlier announced plans to sell a 90 percent stake in PPC and several other non-Chinese ports to a consortium led by US asset manager BlackRock, but the deal collapsed following objections from Beijing.