APM Terminals has started temporary operations at Panama's Port of Balboa on the Pacific coast, kicking off an 18-month stabilization phase. This step aims to restore container movements and ensure the ongoing functionality of one of the world's crucial logistics centers.

APM Terminals is part of the A.P. Moller – Maersk Group, a large shipping company. The company's involvement comes after Panama officially canceled the port concessions held by Panama Ports Company, a subsidiary of Hong Kong’s CK Hutchison, which had run the Balboa and Cristobal terminals for over 20 years. The Supreme Court decision, published in Panama's official gazette on Monday, finalized the cancellation and allowed APM Terminals to take control.

"In this initial stabilization phase, our goal is to ensure that Panama continues to be a reliable logistics hub, while protecting cargo and ensuring the safety of our workforce," said Marliz Bermudez, CEO of APM Terminals Panama. "This process needs to be fast and precise so that the port can gradually return to full operations after the system installation is completed."

This change comes at a critical time in the competition between the U.S. and China over global trade routes. The ruling from January has been seen as a victory for Washington, particularly as President Donald Trump has aimed to reduce Chinese influence over the Panama Canal, which handles about 5% of global maritime trade.

APM Terminals faces major operational challenges during this stabilization phase. One of the top priorities is to implement the Navis N4 terminal operating system, which is widely used at terminals worldwide, and to train the current staff on this new platform. The company will also perform thorough diagnostics on its assets, including a review of cranes, equipment, and systems to identify issues and outline short-term operational plans.

"We understand the challenge we are taking on in this unique process, but we are fully committed to Panama," Bermudez added. "We will closely collaborate with our customers, authorities, and employees to keep everyone informed about the progress of this stabilization phase."

The Panama Maritime Authority has taken control of both ports by decree to ensure operations continue smoothly, according to Alberto Aleman Zubieta, who leads the technical team overseeing the transition. The government is proposing separate contracts for the Port of Balboa and the Port of Cristobal to the AMP Board of Directors, instead of one contract for both ports.

While APM Terminals manages Balboa, TIL Panama, part of the Swiss shipping company Mediterranean Shipping Company, will operate Cristobal. Panamanian President Jose Raul Mulino stated that these arrangements will stay in place as the government develops a new long-term concession framework for future awards.

The workforce will be transitioned through an employer-substitution process, with APM Terminals noting that their expertise will be crucial for maintaining safety and order in operations. Direct communication channels will be set up for shipping lines, customers, suppliers, and transport operators to monitor cargo status and receive operational updates throughout the transition.

This change represents a significant shift in control over strategic infrastructure near the Panama Canal, with impacts that reach beyond the terminals into the broader geopolitical context of trade and influence in the region.