APM Terminals has acquired the Panama Canal Railway Company (PCRC) from Canadian Pacific Kansas City Limited (CPKC) and the Lanco Group/Mi-Jack. Financial details of the transaction were not disclosed.
The 76-kilometre-long railway line runs parallel to the Panama Canal between the ports of Balboa on the Pacific Ocean and Colón on the Caribbean coast, primarily serving the transport of goods between the two oceans. This route serves as an alternative to the Panama Canal, especially during periods of drought that restrict shipping.
Strategic expansion in intermodal transport
Keith Svendsen, CEO of APM Terminals, described the acquisition as a significant infrastructure investment that strengthens the core business of intermodal container transport. PCRC’s established operational excellence opens up new opportunities to expand the service offering for global shipping customers.
CPKC CEO Keith Creel explained that the sale was a strategic move to focus more on the company’s core North American business. The disposal of the “non-core asset” would create value for shareholders and enable the company to optimise its strategy.
According to media reports, the takeover is also linked to geopolitical tensions. The United States is trying to expand its influence in Panama, especially in light of growing Chinese investment in the region.
In 2024, the Panama Canal Railway Company reported revenues of $77 million and EBITDA of $36 million.
With this acquisition, the Danish shipping and logistics group secures an important transport alternative to the Panama Canal and strengthens its presence in the global logistics industry.
