APM Terminals Acquires Panama Canal Railway from CPKC

2025-04-03 global

Panama City, Thursday, 3 April 2025.
CPKC and Lanco Group/Mi-Jack sold the Panama Canal Railway to APM Terminals on April 2, 2025, as part of a strategic divestment. The sale supports CPKC’s focus on North American operations.

Strategic Divestment Details

The Panama Canal Railway Company (PCRC), previously a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since 1998, generated significant financial results before the sale. In 2024, the railway reported revenue of US$77 million with EBITDA of US$36 million [1][2]. The railway operates a strategic 47.6-mile track connecting the Atlantic and Pacific oceans, handling approximately 300,000 containers annually [3].

Operational Impact and Recent Performance

The railway’s strategic importance was highlighted during late 2023 to early 2024, when it experienced a 20% surge in business activity due to drought-related draft limitations imposed by Panama [3]. This infrastructure asset plays a crucial role in Panama’s logistics network, providing both freight and passenger services along the canal [4]. APM Terminals’ acquisition expands their Americas presence, where they currently operate 14 terminals across eight countries as part of their global network of 60 locations in 33 countries [5].

Strategic Implications

CPKC CEO Keith Creel emphasized that this divestment aligns with the company’s strategic focus on its core North American rail operations, stating the sale ‘creates value for shareholders’ while allowing concentration on their three-nation network connecting Canada, the United States, and Mexico [6]. For APM Terminals, CEO Keith Svendsen indicated that the acquisition represents an attractive infrastructure investment aligned with their core services of intermodal container movement [7].

Sources

global trade railway sale