---
title: "AMP Says Balboa and Cristóbal Ports Show 'Significant' Deterioration as PPC Moves to Arbitrate"
date: 2026-03-19
modified: 2026-03-20
author: ""
url: https://panamadaily.news/panama-ports-dispute-amp-ppc-arbitraje/
categories:
  - "Business"
  - "Economy"
  - "Politics"
tags:
  - "arbitraje"
  - "Autoridad Marítima de Panamá"
  - "Balboa"
  - "Cristóbal"
  - "José Raúl Mulino"
  - "Panama Ports Company"
---

# AMP Says Balboa and Cristóbal Ports Show 'Significant' Deterioration as PPC Moves to Arbitrate

## What Happened

The Autoridad Marítima de Panamá (AMP) issued a statement on 19 March saying the ports of Balboa and Cristóbal — operated by Panama Ports Company (PPC) until 23 February — show a “significant” deterioration and conditions “alejadas de las mejores prácticas y estándares internacionales exigidos.” The AMP released the note in response to a PPC publication that accused the Panamanian government of ignoring its claims and failing to answer a request for arbitration before the International Chamber of Commerce (ICC) in Paris.

The AMP described the allegations from PPC and its parent, CK Hutchison, as “falaces e injuriosas.” President José Raúl Mulino had earlier vowed to expose “las bellezas de Panama Ports Company y el atraco que fue eso para nuestro país,” and acknowledged the government missed a deadline to formally notify an arbitration response because it had not yet contracted a forensic firm to defend the country’s interests.

## Background

PPC operated the Balboa and Cristóbal terminals until 23 February, when the Corte Suprema de Justicia declared its consignment contract (adopted through Ley 5 de 1997), including addenda and extensions, unconstitutional. That ruling led to PPC’s removal from both terminals on the same day.

Following the court decision, the AMP granted temporary 18‑month concessions: Balboa to AMPT Panamá (a Maersk affiliate) and Cristóbal to TIL Panamá (affiliated with Mediterranean Shipping Company, MSC). PPC has responded by filing for arbitration against the Republic of Panama at the ICC.

## AMP’s Response and Next Steps

The AMP warned it may stop issuing public rebuttals to PPC’s communications, saying the differences between Grupo Hutchison and the AMP “serán ventiladas ante el tribunal arbitral,” which will decide on the substance of the dispute. The authority indicated it will present Panama’s arguments before the arbitral tribunal and reserves the right to cease public commentary until the arbitration concludes.

President Mulino explained the government had not appointed counsel immediately because it received notification on a Wednesday and had to choose representation by Friday; the administration consulted three international law firms and ultimately selected one to represent the state.

## What This Means

The public exchange highlights an escalating legal and reputational dispute between PPC (and its global affiliates) and Panamanian authorities over control and conditions at two of the country’s principal terminals. The arbitration at the ICC will determine legal claims arising from PPC’s contract and its termination, while the temporary handover to AMPT Panamá and TIL Panamá keeps operations under concessionary management during the 18‑month period.

For stakeholders — from shipping lines and terminal workers to importers and exporters — the arbitration and the AMP’s assessments of terminal conditions will be central to expectations about port maintenance, investment and operational continuity in the short to medium term.