Maersk Unit Acquires Panama Canal Railway from Canadian Pacific, Lanco

In a significant development in the logistics and transportation sectors, Canadian Pacific Kansas City and U.S.-based Lanco Group have divested their interests in the Panama Canal Railway Company. The new proprietor is a unit of Maersk, a major player in the global container shipping industry based in Denmark.

While the financial specifics of the transaction remain undisclosed, Canadian Pacific Kansas City noted that this move aligns with their strategic focus on core operations across Canada, the United States, and Mexico.

Keith Svendsen, the CEO of Maersk's APM Terminals, commented on the acquisition, stating it offers "an attractive infrastructure investment in the region aligned to our core services of intermodal container movement."

The Panama Railway Company, which was established through a collaboration between Canadian Pacific and Lanco Group subsidiaries, operates freight and passenger rail services along the canal. In the previous year, the company reported revenues of $77 million.

This transaction comes amidst geopolitical tensions, with the current U.S. administration under President Donald Trump expressing intentions to reclaim control over the Panama Canal. These statements are driven by concerns regarding increasing foreign influence, notably from China, in the region.

Earlier, Hong Kong's CK Hutchison had reached an agreement to sell strategic ports near the canal to a consortium led by BlackRock. This transaction had initially alleviated some U.S. governmental pressure. However, the finalization of the deal, which was anticipated this week, is now facing delays due to Chinese objections.

(Reuters)