APM Terminals Begins Operations at Balboa as Panama Completes Hutchison Handover

APM Terminals has commenced temporary operations at the Port of Balboa on the Pacific side of the Panama Canal, marking the definitive end of CK Hutchison’s nearly three-decade presence at the strategic waterway. The handover, which took effect on 23 February after the Supreme Court’s January ruling was published in the official gazette, was accompanied by a presidential decree authorising the Panama Maritime Authority to take possession of all terminal assets — including cranes, vehicles and IT systems. MSC subsidiary Terminal Investment Limited simultaneously assumed control of the Cristobal terminal on the Atlantic side.

The transition proceeded despite sustained legal pressure from CK Hutchison, which has initiated ICC arbitration, invoked investment treaty protections and warned Maersk of legal recourse. Beijing’s Hong Kong and Macao Affairs Office had cautioned Panama would face consequences. Panama Ports Company described the takeover as “illegal” and “confiscatory.”

APM Terminals CEO for Panama, Marliz Bermudez, said the priority during the stabilisation phase is “to ensure that Panama maintains the continuity and reliability of its logistics hub, while safeguarding cargo and protecting the safety of all the workforce.” The company confirmed it will deploy the Navis N4 terminal operating system — a migration that will temporarily regulate container movements at the facility.

Balboa and Cristobal together handle approximately 3.8 million TEU annually, representing nearly 40% of Panama’s container throughput. The 18-month interim period will culminate in an international tender for new long-term concessions — a process that will test whether the world’s largest terminal operators are prepared to bid into a jurisdiction where a sitting concession was annulled by constitutional ruling.