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Danish shipping giant Maersk and Swiss-based MSC are to take over the operations of two key ports on the Panama Canal after their Hong Kong-based operator was ejected last month, the Panamanian government said on Monday.
Panama’s Supreme Court last month annulled a contract with conglomerate CK Hutchison Holdings as operator of the Balboa and Cristóbal ports on the famous waterway after legal challenges.
The case stemmed from lawsuits dating back to 2021 and a government audit in 2025 alleging irregularities.
On Monday, the Panamanian government formally assumed control of the port facilities, including cranes, vehicles, computer systems and software, under a decree intended to guarantee their smooth operation until a new concession is awarded within 18 months.
Under the plan, two shipping groups will temporarily operate the ports. A unit of AP Møller-Maersk will oversee the Balboa port on the Pacific side of the canal while the port wing of MSC will run the Cristóbal port on the Atlantic side.
CK Hutchison said it had ceased operations at the terminals on Monday and described the takeover as “forceful” and “unlawful”. Maersk and MSC did not respond to requests for comment.
MSC was part of a consortium, also including BlackRock, that struck a deal last year to take a 90 per cent stake in the unit that runs the two ports.
The $23bn deal won praise from US President Donald Trump, who hailed it as a sign his administration was “reclaiming” the canal. But Beijing later insisted that China’s state-owned shipping giant Cosco should have a majority stake, prompting the buyers to reconsider.
Alberto Alemán Zubieta, a former administrator of the canal who has been appointed to lead a technical team to oversee the transition period, said the arrangement did not imply an expropriation of the machinery and equipment at the two ports.
“This is what is known as an occupation to guarantee that the ports can continue operating. We recognise that the equipment belongs to [a unit of Hutchison],” he added.
Labour minister Jackeline Muñoz said there would be “no lay-offs”.
Hutchison has taken Panama to arbitration following the Supreme Court ruling and Beijing has warned that the Central American country will pay a “heavy price” for the decision.
Beijing has invested substantial sums in Panama since the country switched diplomatic recognition from Taiwan in 2017.
Additional reporting by Jamie John in London
