Canadian Pacific Kansas City Limited (CPKC) has announced the sale of the Panama Canal Railway Company (PCRC) to APM Terminals, a global terminal operator and independent division of A.P. Moller – Maersk.
PCRC, which offers freight and passenger services along the Panama Canal, has operated as a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since its inception in 1998. In 2024, the company reported revenue of USD 77 million and EBITDA of USD 36 million.
“We are pleased to have completed this transaction with APM Terminals, a part of A.P. Moller – Maersk, a key strategic partner of CPKC’s and major customer of the Panama Canal Railway Company,” said Keith Creel, CPKC President and Chief Executive Officer. “The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimise our assets as we focus on growing our core North American rail business through our unrivalled three-nation network connecting Canada, the United States and Mexico.”
Mike Lanigan, Chief Executive Officer of Lanco Group/Mi-Jack, added: “Lanco is very proud to have worked with CPKC and A.P. Moller – Maersk over the past several years. Keith Creel and his group have been a pleasure to work with and I wish to congratulate APM Terminals on the purchase of the Panama Canal Railway. As we all know, Panama is a major transportation hub, and I am quite confident the container business will continue to grow under the leadership of APM Terminals.”
“PCRC represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement,” said Keith Svendsen, CEO of APM Terminals. “The company is highly regarded for its operational excellence and will provide a significant opportunity for us to offer a broader range of services to the global shipping customers we serve.”
PCRC was established following the award of a concession by the Republic of Panama to reconstruct and operate the Panama Canal Railway – a 47-mile route that runs adjacent to the Panama Canal, linking the Atlantic and Pacific oceans. The railway forms a key part of Panama’s logistics infrastructure.
APM Terminals has over 50 years of experience in developing and managing advanced container terminals worldwide. The company currently operates in 60 strategic locations across 33 countries and employs approximately 33,000 people. In the Americas Region, APM Terminals operates 14 terminals in eight countries.