Panama has transferred temporary operational oversight of two key Panama Canal ports to global carriers Maersk and Mediterranean Shipping Company (MSC), following the cancellation of long-standing concessions previously held by CK Hutchison.

The decision affects the Balboa and Cristóbal terminals located at the Pacific and Atlantic entrances of the Panama Canal, two strategic gateways for global container flows. The concessions were annulled after Panama’s Supreme Court ruled the contracts unconstitutional, ending nearly three decades of operations by Panama Ports Company, a CK Hutchison subsidiary.

Under the transition plan, Maersk’s APM Terminals will operate the Balboa terminal while MSC’s Terminal Investment Limited will manage Cristóbal. The temporary licenses are expected to last up to 18 months while Panama prepares a new concession process.

Authorities said the temporary arrangement is designed to ensure uninterrupted port operations and employment while a long-term framework is developed. The Panama Maritime Authority has already taken possession of the facilities as part of the transition. [reuters]

CK Hutchison has strongly criticized the move and is considering legal action, calling the termination unlawful. The dispute adds uncertainty to ongoing negotiations over the sale of Hutchison’s global port assets.