Maersk seeks permanent management of Panama ports
Maersk announced it wants to keep managing Panama’s port facilities on a permanent basis through its subsidiary APM Terminals. The comment was given to local media after months of uncertainty over the future of the two key terminals.
APM Terminals began operating the Port of Balboa in February, taking over from CK Hutchison’s Panama Ports Company after a court ruled the concession unconstitutional.
The cabinet approved the interim contracts in February and said a permanent arrangement would require a public tender. No tender date has been set, and the issue continues to generate debate among officials and industry observers.
Maersk’s stance on the Panama ports
Antonio Domínguez, Maersk’s President for Latin America and the Caribbean, said the government needs to clarify when the concession tender will launch. He added that the company has always viewed the nation as a hub and will stay when the opportunity arises.
Domínguez emphasized that the priority has been operational continuity and logistics stability. “Naturally, what we are doing is operating for 18 months at the request of the Panamanian Government; it is not a concession,” he said, noting the experience has been positive.
Infrastructure and capacity concerns
Domínguez warned that the country lags in port infrastructure and urged authorities to advance their roadmap for added capacity. He said the nation needs more capacity than it currently has to support growing trade.
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He cited projects such as Corozal and Telfers as opportunities, noting the company has operated in the region for 100 years and aims to remain for another century.
Industry reactions and legal disputes
A port consultant said that the nation kept the ports running, but future success depends on securing long-term contracts. “You’re only as good as your last ship,” the consultant remarked.
The consultant added that operators cannot make employment commitments without knowing who will run the ports after July 2027. Investing in equipment is difficult under temporary contracts, and current production levels remain low.
The conglomerate filed a $1.5 billion investment treaty claim in August, adding to a $2 billion ICC case.
The nation hired Hogan Lovells and Cadwalader US LLP to defend against the arbitration claim brought by CK Hutchison’s subsidiary over the cancelled concession.
Future outlook
A permanent arrangement would have to be put out to tender, the government said at the time. But with time, the question of what Panama will do with Balboa and Cristobal has not been answered though it has generated lots of debates regarding the issue.
