The Panama Government Denies PPC's Accusations of Lack of Coordination in Port Takeover

President José Raúl Mulino categorically denied that the takeover of the Balboa and Cristóbal ports was carried out arbitrarily and without prior communication with the Panama Ports Company (PPC), as they claimed in a statement after it was announced that the Panama Maritime Authority (AMP) would assume control of the terminals. He stated that last year he held several meetings with executives of the company CK Hutchison to discuss the matter and find a solution that would benefit both parties, anticipating that a lawsuit challenging the constitutionality of the contract was already pending before the Supreme Court of Justice (CSJ), but he was not received with the same disposition; he encountered an intransigent stance.

He reiterated that all he found was “arrogance” and phrases like “nobody is going to kick us out of the ports, nobody is going to take us out of the ports”; therefore, the necessary decisions were made to guarantee the operability of both ports after the Court’s ruling. “They chose the wrong president and the wrong government because here, things are done right,” he emphasized. He noted that it seems incongruous for the company to take this position when its work at the terminals has not been “transparent,” but what he finds most striking is that opposing factions support these statements when, during his administration, they failed to oversee its operations.

Mulino explained that, through the Ministry of Foreign Affairs, the corresponding approaches have been made with the Chinese ambassador in Panama to refute these assertions, because for almost a year multiple options were analyzed, both with the operator and individually, to ensure the national interest and the country’s competitiveness in logistics and port matters. The president acknowledged that the court ruling was the most difficult scenario among the possibilities evaluated, but the necessary measures are being taken to minimize its impact and restore operations at the ports.

He explained that, to achieve this goal, work will be carried out 24 hours a day at both terminals this weekend to expedite container handling and continue the process of employer substitution for employees, which is at almost 80% in the port of Cristóbal and 70% in Balboa. Authorities asked the public not to pay attention to job postings at these ports from third-party companies, as this process will continue to be carried out directly through the new operators APM Terminals and Terminal Investment Limited (TIL).

Following the court ruling and the Panamanian government’s takeover of the ports, Panama Ports Company announced it will continue with the legal actions filed against it and strongly objected to the decision. PPC believes Panama’s actions are part of a campaign against it that has been brewing for a year, disregarding the investments it has made in the country for decades. “The State has not paid any compensation,” the document states.

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