APM Terminals Expands Reach with Acquisition of Panama Canal Railway Company

PANAMA: APM Terminals, a division of AP Moller-Maersk, has acquired the Panama Canal Railway Company (PCRC) from a joint venture between Canadian Pacific Kansas city adn crane manufacturer Lanco Group/Mi-Jack.

The PCRC was established in 1998 after receiving a government concession to revitalize the previously neglected railway that runs alongside the Panama Canal. This line, which connects Balboa and Colon, underwent meaningful upgrades, including a gauge conversion from 1,524 mm to 1,435 mm.Operations resumed in 2001 and now include double-stack container transport along with passenger services. In it’s latest financial year of 2024, PCRC reported revenues of $77 million and an EBITDA of $36 million.

On April 2nd, CPKC president & CEO Keith Creel highlighted that APM Terminals is not just a vital partner but also one of PCRC’s major clients. He noted that selling this non-essential asset benefits shareholders while allowing CPKC to concentrate on enhancing its primary North American rail operations across Canada, the U.S.,and Mexico.

Keith Svendsen, CEO of APM Terminals, expressed enthusiasm about the acquisition: “PCRC is an appealing infrastructure investment that aligns perfectly with our intermodal container services. The company’s reputation for operational excellence opens up exciting opportunities for us to expand our service offerings to global shipping clients.”

BofA Securities and Lazard Frères & Co acted as financial advisors for PCRC and also CPKC and Lanco Group/Mi-Jack; Sullivan & Cromwell provided legal counsel throughout this transaction.