The Panama Maritime Authority (AMP) has taken possession of two ports on Panama Canal, after Hong Kong-based CK Hutchinson’s contracts were ruled invalid, reports Reuters. Logistics company Maersk and the Mediterranean Shipping Company will take over operations temporarily.
The government said it approved two temporary concession contracts with AMP, lasting up to 18 months, for the operation of the Balboa and Cristobal terminals. Maersk subsidiary APM Terminals Panama will operate the Balboa port, while TIL Panama, part of the Mediterranean Shipping Company, will run operations at Cristobal.
Panamanian President Jose Raul Mulino said, “Let me be clear, this does not imply an expropriation of those assets, but rather their use to ensure the operation of the ports until their real value is determined for the corresponding actions. I repeat, this is not an expropriation.”