The Trump administration’s claims that Greenland, a protectorate of Denmark, should be protected from geopolitical developments and that the Panama Canal was stolen from the US have acquired an interesting Danish edge.
This after the port operating division of Danish shipping giant AP Moller-Maersk completed the acquisition of the Panama Canal Railway Company (PCRC) from railway conglomerate Canadian Pacific Kansas City (CPKC) and logistics and infrastructure enterprise, the Lanco Group/Mi-Jack.
The deal, announced in Panama City on the same day that President Donald Trump announced a raft of new “reciprocal tariffs” on countries that have supposedly benefited from trade imbalances with the US, marks a significant expansion of Maersk's intermodal logistics capabilities in Central America.
The PCRC operates a 76-kilometre (47-mile) single-line railway adjacent to the Panama Canal, facilitating cargo movement between the Atlantic and Pacific Oceans.
The railway also provides passenger services and is a critical link in Panama's logistics network.
In 2024, PCRC reported revenues of $77 million and Ebitda earnings of $36m, underscoring its financial viability and operational importance.
Keith Svendsen, CEO of APM Terminals, described the acquisition as a strategic move aligned with Maersk's core focus on intermodal container movement.
"The Panama Canal Railway Company represents an attractive infrastructure investment in the region," Svendsen said.
"It will enable us to offer a broader range of services to global shipping customers while enhancing operational excellence.”
The railway has historical significance, dating back to its original construction in the 1850s as a vital cargo route before the canal's creation.
After years of decline, it was revitalised in the early 2000s by CPKC and Mi-Jack following their acquisition in 1998. The joint venture invested $80m to modernise railway operations adjacent to the canal.
CPKC president and CEO Keith Creel said the sale of this "non-core asset" allowed CPKC to focus on its North American rail business spanning Canada, the United States and Mexico.
"This transaction creates value for our shareholders while optimising our assets," Creel said.
The acquisition comes amid heightened geopolitical attention on Panama's transport infrastructure.
Recent trade tensions and drought-induced disruptions have amplified the strategic importance of alternative logistics routes like the PCRC.
While the financial terms of the deal remain undisclosed, analysts view this purchase as a pivotal step for Maersk's global logistics strategy, reinforcing its presence in a region critical to international trade.
