In a strategic move to diversify and strengthen its interoceanic freight capabilities, APM Terminals—part of Danish shipping conglomerate Maersk—has acquired the Panama Canal Railway from American group Lanco and Canadian rail holding CPKC. The acquisition was confirmed in an official press release issued by APM Terminals.
Danish shipping giant strengthens presence in Latin American logistics
The Panama Canal Railway spans 76 kilometers of single-track line, providing a vital overland link between the Atlantic and Pacific oceans. While it cannot compete with the volume of the Panama Canal itself, the railway plays a crucial role during periods of limited canal capacity—such as during droughts—by offering a reliable alternative for freight transport.
“The Panama Canal Railway is a compelling infrastructure investment for the region,” said Keith Svendsen, CEO of APM Terminals, underlining the company’s ambition to enhance resilience and flexibility in global supply chains.
A timely acquisition amid Panama Canal bottlenecks
The railway’s significance has grown in recent years as climate-related water shortages have increasingly disrupted shipping through the Panama Canal. In January 2024, for example, Maersk turned to the railway to move cargo across the isthmus when canal restrictions allowed only a limited number of vessels to pass through each day.
According to the Financial Times, such disruptions are becoming more frequent, making overland alternatives more attractive to major players in global logistics. The acquisition by Maersk aligns with a broader industry trend of investing in multimodal solutions to navigate bottlenecks and climate risks.
Strategic implications for Maersk and Latin America
For Maersk, the acquisition bolsters its footprint in Latin America and reinforces its position as a vertically integrated logistics provider. By directly controlling a key piece of infrastructure in Panama, the company is better equipped to offer reliable end-to-end services to clients navigating between Asia and the Americas.
The move also reflects Panama’s growing importance as a logistics hub—not only because of the canal but also due to its increasingly developed infrastructure and stable business environment. Analysts suggest the railway could play an expanding role in regional trade as demand grows for climate-resilient supply routes.
What comes next?
Maersk has not disclosed the value of the acquisition, but market observers see the move as a calculated response to global logistics volatility. The integration of the Panama Canal Railway into APM Terminals’ portfolio is expected to be finalized later this year, pending regulatory approvals.
With maritime chokepoints under pressure and climate impacts on the rise, this acquisition could mark a turning point in how global shippers navigate the Americas.
