Panama published a Supreme Court decision on Monday in its official gazette canceling a number of port contracts held by a subsidiary CK 'Hutchison. This cleared the way for a Maersk APM Terminals temporary takeover.

This publication is the final legal act of annulment for concessions granted to Panama Ports Company, a subsidiary of Hong Kong based CK Hutchison for over two decades.

Alberto Aleman Zubieta is the head of the technical team overseeing transition. After the publication of the ruling, the 'Panama Maritime Authority' (AMP) took possession of the two ports to ensure a 'uninterrupted operation.

Aleman Zubieta said at a press briefing that instead of a contract covering both ports, "two separate contracts will be presented to the board of directors of 'the AMP - one for the Port of Balboa, and a second for the Port of 'Cristobal."

Maersk didn't immediately comment on the issue.

In early February, Panamanian president Jose Raul Mulino announced that the government would formalize a deal with APM Terminals?Panama a subsidiary Danish shipping group Maersk to manage and control ports as soon as the ruling becomes legally binding.

Mulino said that the current arrangement would continue until the state creates a new, long-term concession framework.

Political analyst Jose 'Stoute said that the moment the official gazette published the court ruling, Panama?Ports lost control of the port.

The decision issued by the U.S. government in late January was made amid an increasing rivalry between Washington and Beijing over global trade routes. It is a victory for Washington.

U.S. president Donald Trump has pushed to curb Chinese influences over the Panama Canal. The canal carries around 5% of all global maritime trade. (Reporting and writing by Elida Moreno, editing by Aida Pelaez Fernandez and Sarah Morland).

(source: Reuters)