Danish shipping and logistics company AP Møller Mærsk has acquired a 76km single-track railway running alongside the Panama Canal, mainly used for trans-oceanic cargo transport.
Canadian Pacific Kansas City (CPKC) and the Lanco Group/Mi-Jack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, Maersk’s global terminal-operating division, for an undisclosed amount.
Established in 1998, PCRC offers ocean-to-ocean freight and passenger transport via the Panama Canal and has been a joint 50:50 venture between CPKC’s subsidiary Kansas City Southern and Lanco Group/Mi-Jack.
Keith Svendsen, CEO of APM Terminals, said: “PCRC 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.”
Keith Creel, CPKC president and CEO, said: “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 US and Mexico.”
Mike Lanigan, CEO of Lanco Group/Mi-Jack, said: “Lanco is very proud to have worked with CPKC and AP 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.”
No financial details of the deal were disclosed, but it has been revealed that in 2024, PCRC generated $77m in revenue and $36m in EBITDA.
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