Maersk’s terminal operator, APM Terminals, has acquired the Panama Canal Railway Company (PCRC) from Canadian Pacific Kansas City Limited and the Lanco Group/Mi‑Jack.
PCRC operates a 76-km single-line railway adjacent to the Panama Canal, providing ocean-to-ocean freight and passenger services.
The company primarily facilitates cargo movement between the Atlantic and Pacific Oceans and has been a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since its formation in 1998.
The PCRC was formed when it was awarded a concession from the Republic of Panama to reconstruct and operate the 76-km Panama Canal Railway, which runs north-south and traverses the isthmus of Panama between the Atlantic and Pacific Oceans.
“The Panama Canal Railway Company represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement,” said APM Terminals CEO, Keith Svendsen.
“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.”
In 2024 PCRC generated revenue of $77 million USD (€67.8 million) and $36 million USD (€31.7 million) in EBITDA.
The importance of using alternative transport routes to maintain supply chain efficiency was underscored by Maersk’s actions in 2024 when it shifted some container traffic to the Panama Canal Railway.
That shift, in response to the reduced water levels in the Panama Canal caused by a drought, resulted in a 20 per cent increase in rail traffic for Maersk.
“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 CPKC President and CEO, Keith Creel.
“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.”
CEO of Lanco Group/Mi-Jack, Mike Lanigan, noted that Panama is a major transportation hub, saying he was ‘quite confident’ the container business will continue to grow under the leadership of APM Terminals.
APM Terminals does not operate a terminal in Panama but has maintained a regional Maersk office in the country since 1992, together with two fulfilment centres.
It operates a container terminal in Quetzal, described as ‘the largest facility’ between the Mexican port of Lázaro Cardenas and the Panama Canal, on the west coast of Central America.
APM’s facility at Quetzal is the only terminal in Guatemala capable of handling 10,000 TEU vessels due to its 14.5m draft. The terminal, which opened in 2017, has an annual container throughput capacity of 340,000 TEU.
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