APM Terminals and Terminal Investment Limited (TiL) took over operations at Balboa and Cristóbal ports 🏗️ this Monday, the 2nd and 5th largest container ports on the Panama Canal. This to provide continuity of operations following the annuled concession contract of Panama Ports Company, part of Hong Kong based Hutchison Ports Holding.
On Monday the Cabinet Council approved temporary contracts of 18 months with APM Terminals, a subsidiary of Danish company Maersk 🇩🇰 and TiL, a subsidiary of Swiss 🇨🇭 MSC, to operate the Balboa and Cristóbal terminals respectively, for a combined total of approximately $41.9 million.
The contracts were approved under Cabinet Resolutions No. 4 (APM Terminals, Balboa, Pacific side for $26.1 million) and No. 5 (TiL Panama S.A., Cristobal, Atlantic side, $15.8 million).
APM Terminals was selected in light of its operational track record across 60 ports globally and its position as the main current user of the Balboa terminal. TiL(MSC) is active in more than 30 countries and responsible for managing 70 container terminals worldwide, will pay $15.8 million to the State for operating rights for a period of up to 18 months.
These events followed the publication in the February 23rd Official Gazette of the 29 January ruling by Panama’s Supreme Court which declared the concession granted to Panama Ports Company (PPC) unconstitutional. As the concession contract with PPC was left without legal basis, the Panamanian State ordered the temporary occupation of the ports of Balboa and Cristóbal due to urgent public interest.
PPC party called the takeover illegal and is pursuing legal action, while President Mulino asserted that it is not an expropriation and that the seizing of assets is temporal.
According to the latest press reports, the Port of Balboa surpassed 3,900 container movements on Saturday February 28th, while Cristóbal returned to normal operations (updated on 2 March).
Press Release by APM Terminals on starting operating Balboa Port
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