Panama Seizes Control of Balboa and Cristóbal Canal Terminals, Launches 18-Month Transition

Overview

• The Panama Maritime Authority took formal possession under an occupation decree and said port operations will continue without interruption.
• APM Terminals will operate Balboa and MSC’s Terminal Investment Limited will manage Cristóbal during the transition, under contracts of about $26 million and nearly $16 million respectively, according to the government.
• CK Hutchison’s Panama Ports Company called the takeover illegal and said the company will challenge it through International Chamber of Commerce arbitration in Paris.
• Officials said the state will return or compensate for movable equipment used during the occupation and will hire top international law firms for a legal process they expect to last years.
• The United States publicly welcomed Panama’s move, while China and Hong Kong authorities denounced it, highlighting the geopolitical stakes at a waterway that carries roughly 5% of global seaborne trade.