Image Credentials: Image Title: Panama Canal Railway Company Acquired by Maersk Subsidiary Source: AI-Generated Image (AI DALL·E 3) Date: April 2025 Attribution: Created by AI-generated imagery (AI DALL·E 3), and it does not depict a real-world scene.
By Staff Writer with Agencies
In a significant shift for Central American logistics, the Panama Canal Railway Company (PCRC) has been acquired by APM Terminals, a subsidiary of global shipping giant A.P. Moller-Maersk. The railway, previously owned as a joint venture between Canadian Pacific Kansas City (CPKC) and the Lanco Group/Mi-Jack, is now set to become an integral part of Maersk’s intermodal transportation network. The financial details of the transaction have not been disclosed.
A Strategic Move for Maersk
PCRC, which has played a crucial role in moving freight and passengers across the Isthmus of Panama, generated $77 million in revenue in 2024, with an EBITDA of $36 million. The railway stretches 76.6 kilometers, connecting Colón on the Atlantic coast to Balboa on the Pacific, running parallel to the Panama Canal.
Keith Svendsen, CEO of APM Terminals, emphasized the strategic importance of the acquisition. “This investment aligns perfectly with our core services of intermodal container movement. The Panama Canal Railway is highly regarded for its operational efficiency, and we look forward to expanding our service offerings to global shipping customers.”
CPKC’s Focus on North America
CPKC president and CEO Keith Creel stated that the decision to sell PCRC was in line with the company’s strategy to optimize assets and strengthen its focus on North American rail operations. Since acquiring Kansas City Southern (KCS), CPKC has been concentrating on its rail freight services between Canada, the United States, and Mexico.
A Historic Railway with a Vital Role
Originally constructed between 1850 and 1855, the Panama Canal Railway predates the opening of the Panama Canal by nearly six decades. It played a pivotal role in supporting the canal’s construction in the early 20th century but fell into decline after World War II. In 1997, KCS and Mi-Jack secured a concession from the Panamanian government to rehabilitate and operate the railway. It was reopened in 2001 and has since facilitated both freight and passenger services.
The sale marks a new chapter for the railway, with APM Terminals expected to enhance its efficiency and integration with Maersk’s global logistics network. Industry experts predict that the acquisition could lead to improvements in intermodal transportation, further strengthening Panama’s position as a critical hub for international trade.
As global trade dynamics continue to evolve, the impact of this sale on regional and international supply chains will be closely watched.