PANAMA CITY: Panama on Monday (Feb 23) revealed in its official gazette a Supreme Court docket ruling cancelling key port contracts held by a subsidiary of CK Hutchison, clearing the best way for Maersk and the Mediterranean Transport Firm to take over briefly.
The publication finalises the authorized annulment of concessions for the Balboa and Cristobal terminals close to the Panama Canal, which Panama Ports Firm, a subsidiary of Hong Kong-based CK Hutchison, had operated for greater than 20 years.
The Panama Maritime Authority (AMP) has taken possession of each ports by decree to make sure uninterrupted operations, mentioned Alberto Aleman Zubieta, head of the technical group overseeing the transition, after the ruling turned closing upon publication.
On Monday afternoon, the federal government mentioned it accepted two momentary concession contracts with AMP, lasting as much as 18 months, for the operation of the Balboa and Cristobal terminals.
Maersk subsidiary APM Terminals Panama will function the Balboa port, whereas TIL Panama, a part of the Mediterranean Transport Firm, will run operations at Cristobal.
Panamanian President Jose Raul Mulino mentioned the momentary contracts had been issued as “a reliable instrument that respects asset possession”.
“Let me be clear, this doesn’t suggest an expropriation of these belongings, however fairly their use to make sure the operation of the ports till their actual worth is set for the corresponding actions. I repeat, this isn’t an expropriation,” Mulino mentioned in a televised deal with on Monday afternoon.