ADVERTISEMENT

Investing

Denmark’s Maersk buys Panama Canal railway despite Trump threat

By Andrew Rosati

Published: 

The Paqueta Island bulk carrier navigates through the Miraflores locks of the Panama Canal near Panama City, Panama, on Monday, Dec. 23, 2024. President-elect Donald Trump said Saturday that the Panama Canal is charging exorbitant prices and rates of passage on US naval and merchant ships, and he demanded that fees be lowered or else Panama should return the canal to the US. (Tarina Rodriguez/Bloomberg)

Danish shipping powerhouse A.P. Moller-Maersk A/S purchased a railway linking ports at both ends of the Panama Canal, undermining the US’s presence along a key trade route where Donald Trump is trying to elbow out competitors.

Maersk’s port operator, APM Terminals, acquired the Panama Canal Railway Company, the owner of the line that stretches across the isthmus nation, from a joint venture between Canadian Pacific Kansas City and the US’s Lanco Group.

“The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimize our assets as we focus on growing our core North American rail business through our rivaled three-nation network connecting Canada, the US and Mexico,” CPKC CEO Keith Creel said in a statement.

The Calgary-based company, which operates routes across North America, didn’t disclose how much it received for the sale of the 47-mile (76-km) railway running along the waterway that links the Atlantic to the Pacific Ocean.

For months, Trump has railed against encroaching Chinese influence of the Panama Canal, which the US built last century and then ceded control over nearly three decades ago. The Republican president insists the handover was a bad deal and has threatened to “take back” the waterway.

Panama’s government declined to comment on a private transaction not related to operations of the Canal.

In March, BlackRock Inc. led an acquisition of two ports on either side of the Panama Canal from Hong Kong’s CK Hutchison for a $19 billion cash deal. Beijing bristled at a the sale, which now may be delayed.

The railway “represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement,” APM Terminals CEO Keith Svendsen said.

--With assistance from Michael McDonald.

U.S. President Donald Trump’s reciprocal tariffs on trading partners are set to take effect today, a day he has proclaimed as “Liberation Day” for American trade. CTV News has extensive coverage across all platforms:

  • CTVNews.ca has in-depth coverage, real-time updates, and expert analysis on what the tariffs will mean for Canadians.
  • CP24.com has developments out of Queen’s Park and what the tariffs mean for the people of the GTHA.
  • BNNBloomberg.ca has what this means for the business community, investors, and the market.

©2025 Bloomberg L.P.