PANAMA CITY, Feb 23 (Reuters) – On Monday, Panama published a Supreme Court decision in its official gazette that cancels important port contracts held by a CK Hutchison subsidiary. This allows Maersk's APM Terminals to temporarily take over the operations.

This publication confirms the cancellation of concessions for the Balboa and Cristobal terminals, which the Panama Ports Company (PPC), a subsidiary of Hong Kong's CK Hutchison, had managed for over twenty years.

The Panama Maritime Authority (AMP) has taken control of both ports by decree to ensure smooth operations, stated Alberto Aleman Zubieta, who leads the team managing the transition, after the ruling was officially published.

“We are presenting two separate contracts to the AMP Board of Directors — one for the Port of Balboa and another for the Port of Cristobal, instead of just one contract covering both ports,” Aleman Zubieta told reporters.

Maersk has not yet commented on this issue.

Earlier in February, Panamanian President Jose Raul Mulino announced that the government would proceed to formalize an agreement with APM Terminals Panama, a subsidiary of Danish shipping company Maersk, to manage the ports once the ruling became legally effective.

Mulino explained that this arrangement will stay in place while the state works on a new long-term concession framework to be offered in the future.

“The moment the official gazette publishes the court's ruling, Panama Ports loses control over the ports,” commented political analyst Jose Stoute.

This ruling was issued in late January and comes amid increasing competition between the U.S. and China over global trade routes, representing a victory for Washington. U.S. President Donald Trump has been active in trying to limit Chinese influence over the Panama Canal, which handles about 5% of global maritime trade.