Panamanian President Jose Raul Mulino has moved to ease tensions with China as Panama continues to manage the fallout from the loss of CK Hutchison’s concessions at the Balboa and Cristobal terminals.
During a visit to Balboa on 9 April, Mulino struck a more measured tone after Panama’s Foreign Minister linked increased inspections of Panama-flagged vessels in Chinese ports to the court ruling that invalidated the legal framework behind the original terminal concessions.
Reuters reported that Mulino said Panama was seeking to lower tensions and restore normal relations.
He said: “I hope and am confident that the escalation of this type of action will decrease and be positive. We are not interested in having a problem with China, but we are not going to allow these things to continue ‘ad infinitum’ either, because – more than the name of Panama – what is at stake is the global cargo that, obviously, leaves China in large proportions to the rest of the world; and that to some extent also harms Chinese cargo.”
Reuters said Mulino described vessel inspections as not unusual in international shipping and said Panama was still assessing the situation. He also said the government had raised concerns with Chinese authorities and wanted to clarify the basis for the measures affecting Panama-flagged ships.
READ: Panama Canal terminal row disrupts port operations
Official information released by Panama’s presidency after the visit said Balboa is operating normally and efficiently under a temporary 18-month concession granted to Maersk while a definitive concession is tendered.
The same statement said the government is preparing new concession processes for Balboa and Cristobal, as well as tender documents for Margarita port.
The presidency added that the Balboa workforce is fully Panamanian and presented the current arrangement as a response to the Supreme Court ruling rather than a political move in favour of any operator.
In a separate 8 April statement, Mulino said the government had acted to protect employment and keep both ports functioning.
The latest developments add a diplomatic layer to a dispute over arbitration proceedings involving Panama Ports Company and Maersk, alongside wider disruption surrounding terminal operations near the canal. Reuters reported that Mulino declined to comment on the separate arbitration involving Maersk, saying it was not a matter for the government.
