Shipping Giant Maersk Acquires Panama Rail Line Amid US-China Tensions

Global trade is shifting tracks. As intermodal freight, rail logistics, and canal alternatives reshape shipping, Maersk’s Panama Canal Railway acquisition puts infrastructure control back on the map.

Danish shipping company A.P. Møller-Maersk has acquired the Panama Canal Railway Company (PCRC), a critical 76-kilometre freight and passenger rail link, showing its intensified focus on intermodal logistics and infrastructure investments in the Americas. As Financial Times reports, the deal, struck with Canadian Pacific Kansas City (CPKC) and US-based Lanco Group, gives Maersk control of a vital land route connecting the Atlantic and Pacific Oceans.

The financial terms of the transaction remain undisclosed. However, PCRC generated USD 77 million in revenue and USD 36 million in EBITDA in 2024, according to APM Terminals, a subsidiary of Maersk that led the acquisition. The rail company’s strategic value has increased amid climate-related disruptions at the Panama Canal, where drought conditions have throttled vessel movement.

Denmark’s Maersk buys Panama Canal railway //t.co/a0H4xpTWhl

— FT Economics (@fteconomics) April 2, 2025

Logistics Strategy Behind Maersk’s Rail Infrastructure Acquisition

Keith Svendsen, CEO of APM Terminals, said that the move aligns closely with Maersk’s long-term strategy: "The Panama Canal Railway Company represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement." As noted by Reuters, the acquisition marks Maersk’s first direct ownership of a railway, but the group has been using the line operationally, particularly during the 2023–2024 drought.

The 76-km railway, running parallel to the canal, serves as an alternative route for cargo containers transiting between the ports of Balboa (Pacific side) and Colón (Caribbean side). According to Railway Gazette International, the line has been handling around 300,000 container moves annually but has capacity to scale to 2 million. Maersk intends to capitalise on this underused potential.

Geopolitical Tensions and Port Ownership Along the Panama Canal Zone

The deal unfolds amid escalating geopolitical tension between the US and China over control of logistics assets in Panama. The US President Donald Trump had recently renewed calls for Washington to "take back" the canal zone, citing fears of growing Chinese influence. As Financial Times notes, the ports at either end of the canal are now set to be sold by Hong Kong’s CK Hutchison to a consortium led by US investment giant BlackRock and MSC’s terminal operator TiL—Maersk’s largest shipping rival.

While the ports sale remains pending, the railway acquisition gives Maersk a competitive foothold at a moment of flux. The Maritime Executive points out that Maersk had already tested the railway in 2024, redirecting cargo due to water restrictions in the canal. "Some large containerships offloaded boxes for rail transfer due to draft limits," it reports.

🇪🇺🇩🇰 Maersk just bought the Panama canal railway pic.twitter.com/Zbw1ST8w34

— Mariska den Eelden 🇪🇺🇳🇱 (@eeldenden) April 3, 2025

PCRC Rail History and Container Transport Potential

The Panama Canal Railway Company, as Railway Gazette recounts, was formed in 1998 as a joint venture between Kansas City Southern and Mi-Jack Products (a Lanco Group unit), under a concession to rebuild the historic Panama Railroad. Originally opened in 1855, the railway was the fastest pre-canal link between the US East and West coasts.

The concessionaires invested USD 80 million to convert the track to standard gauge and relaunch operations in 2001, modernising the line for containerised double-stack freight and adding a passenger service. Since then, PCRC has been regarded as a well-run but underutilised asset, now framed by CPKC as "non-core" amid its push to consolidate North American operations. "The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimise our assets," said Keith Creel, CEO of CPKC, in a statement published by APM Terminals.

Maersk Expands Freight Connectivity Amid Global Supply Chain Shifts

With this acquisition, Maersk deepens its footprint in critical infrastructure beyond traditional maritime operations, enabling more resilient supply chain routing in the Americas. As Maritime Executive notes, the company is betting on integrated logistics capabilities that span land and sea, especially in regions prone to disruption. The railway’s dual function—freight and passenger movement—adds flexibility. And the line’s ability to bypass congested waterways offers time and cost advantages, especially during environmental crises. Analysts quoted by Reuters suggest that Maersk’s control of the railway could provide leverage in future negotiations over canal access and trade routes.

The acquisition also reflects a broader recalibration of infrastructure control across Central America, as western firms seek to counterbalance China’s presence. Although not directly mentioned in the sale, Beijing has pressured CK Hutchison to reconsider divesting its Panama port holdings, complicating parallel negotiations. By contrast, Maersk’s deal appears to have moved swiftly—perhaps aided by its status as a European, rather than US or Chinese, stakeholder, enabling smoother regulatory navigation in Panama. According to APM Terminals, the acquisition will allow Maersk to expand service offerings across its global network and reduce intercontinental transit vulnerabilities.

Source: Financial Times; Reuters; Railway Gazette International; APM Terminals; The Maritime Executive