Giant shipping lines Maersk and MSC have taken over operations of two key ports on the Panama Canal after Panama’s Supreme Court annulled a contract with conglomerate Hong Kong-based CK Hutchison Holdings.
The Financial Times reported that the Panamanian government formally assumed control of the Balboa and Cristóbal port facilities, including cranes, vehicles, computer systems and software, until a new concession is awarded in the next 18 months. Under the plan, AP Møller-Maersk will oversee the Balboa port on the Pacific side of the canal, while MSC will run the Cristóbal port on the Atlantic side.
Hutchison has taken up arbitration following the Supreme Court ruling, and Chinese authorities have warned that Panama will pay a “heavy price” for the decision. The company said it had not consented to the use of any of its equipment and had received no compensation.