Danish shipping giant AP Møller-Maersk has finalized a deal to acquire the Panama Canal Railway, a key infrastructure link that connects the ports at both ends of the Panama Canal. This acquisition loosens the control previously held by U.S. interests over the railway, at a time when President Donald Trump has been vocal about his desire to reassert American influence in the region.
According to a Financial Times report, Maersk’s port business, APM Terminals, announced on Wednesday that it had purchased the Panama Canal Railway Company from U.S.-based Lanco Group and Canadian Pacific Kansas City. The 76-kilometer railway, which runs parallel to the waterway, serves as a critical transport route for cargo between the Atlantic and Pacific Oceans. While the deal’s financial details were not disclosed, it marks a significant shift in the control of the railway.
The acquisition comes amid heightened U.S. pressure over the Panama Canal, a vital trade route for global commerce. President Trump had previously threatened to “take back” control of the canal, which has sparked concern among international stakeholders. The Panama Canal Railway provides an alternative route for shipments between the ports of Balboa on the Pacific side and Colón on the Caribbean side.
The deal also ties into broader geopolitical tensions, with the U.S. pushing for the sale of nearby ports, currently operated by Hong Kong’s CK Hutchison, to a consortium led by U.S. investment firm BlackRock and Maersk’s main competitor, Mediterranean Shipping Company. Trump has frequently voiced concerns over Chinese influence in the region, even alleging that “China is running the Panama Canal.”
Maersk’s acquisition of the Panama Canal Railway is expected to enhance the company’s service offerings, especially after a recent drought in the region restricted shipments through the canal. The railway’s capacity, though more limited than the canal, has been seen as an increasingly important alternative for global shipping. Last year, Maersk used the railway to bypass canal congestion and continue shipments to North and Latin America.
Keith Svendsen, CEO of APM Terminals, commented that the railway is highly regarded for its operational excellence and will help the company expand its services to global shipping customers. In 2024, the Panama Canal Railway Company is expected to generate $77 million in revenues, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $36 million.
The acquisition is also tied to the ongoing U.S. push to influence the region’s strategic ports. While the deal is significant for Maersk, it remains to be seen how it will impact broader geopolitical dynamics, especially as Trump’s administration continues to seek greater control over Central American trade routes.
