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A.P. Moller – Maersk division APM Terminals has purchased the Panama Canal Railway Company (PCRC) from Canadian Pacific Kansas City (CPKC) and the Lanco Group/Mi-Jack.
PCRC is a 76km railway adjacent to the Panama Canal and is part of Panama’s logistics network.
It offers freight and passenger services across the isthmus of Panama between the Atlantic and Pacific Oceans.
CPKC president and CEO Keith Creel said: “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.
“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.”
PCRC, established in 1998 as a joint venture between CPKC and Lanco Group/Mi-Jack, reported revenues of $77m and an EBITDA of $36m in 2024.
APM Terminals CEO Keith Svendsen said: “The Panama Canal Railway Company represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement.
“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.”
Financial advisory services for the transaction were provided by BofA Securities and Lazard Frères, with Sullivan & Cromwell offering legal counsel.
Last month, Patriot Rail and CPKC announced that they will develop a multi-commodity transload facility on CPKC’s network in Denton, Texas, to enhance logistics services in the Dallas–Fort Worth area.
"APM Terminals buys Panama Canal Railway from CPKC and Lanco Group" was originally created and published by Railway Technology, a GlobalData owned brand.
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