A.P. Moller-Maersk Acquires Panama Canal Railway
Danish shipping giant A.P. Moller-Maersk A/S has purchased a railway that connects ports at both ends of the Panama Canal. APM Terminals, Maersk’s port operating division, acquired the Panama Canal Railway Co. from a joint venture between Canadian Pacific Kansas City and the U.S.’s Lanco Group.
“The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimize our assets while focusing on growing our core North American rail business through our unrivaled three-nation network connecting Canada, the U.S., and Mexico,” said CPKC CEO Keith Creel in a statement.
The Calgary-based company, which operates routes across North America, did not disclose the sale price for the 47-mile (76-km) railway that runs along the waterway linking the Atlantic to the Pacific Ocean.
For months, former President Trump has expressed concerns about increasing Chinese influence over the Panama Canal, which the U.S. constructed and ceded control of nearly three decades ago. He has criticized the handover as a poor decision and threatened to “take back” the waterway.
Panama’s government declined to comment on the private transaction, which is unrelated to canal operations.
In March, BlackRock Inc. led a $19 billion cash acquisition of two ports on either side of the Panama Canal from Hong Kong’s CK Hutchison. This sale has faced potential delays, drawing criticism from Beijing.
The railway “represents an attractive infrastructure investment in the region aligned with our core services of intermodal container movement,” stated APM Terminals CEO Keith Svendsen.
