CPKC, Lanco Group sell Panama Canal Railway Company to APM Terminals

Canadian Pacific Kansas City (CPKC) and Lanco Group/Mi-Jack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, a global terminal operator and a division of A.P. Moller – Maersk.

PCRC, which provides freight and passenger services along the Panama Canal, had been a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since its formation in 1998. In 2024, the railway generated US$77 million in revenue and US$36 million in earnings before interest, taxes, depreciation and amortization (EBITDA).

“We are pleased to have completed this transaction with APM Terminals, a part of A.P. Moller – Maersk, a key strategic partner of CPKC’s and major customer of the Panama Canal Railway Company,” said Keith Creel, CPKC president and chief executive officer. “The sale of this non-core asset creates value for our shareholders and reflects our commitment to optimize our assets as we focus on growing our core North American rail business through our unrivalled three-nation network connecting Canada, the United States and Mexico.”

Mike Lanigan, chief executive officer of Lanco Group/Mi-Jack, also welcomed the sale.

“Lanco is very proud to have worked with CPKC and A.P. Moller – Maersk over the past several years,” Lanigan said. “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.”

Keith Svendsen, CEO of APM Terminals, said the acquisition aligns with the company’s core business of intermodal container movement.

“PCRC represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement,” Svendsen said. “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.”

PCRC was formed when it was awarded a concession from the Republic of Panama to reconstruct and operate the Panama Canal Railway. The 47-mile railway, which runs adjacent to the Panama Canal, serves as a key link between the Atlantic and Pacific oceans.

APM Terminals has operated container terminals worldwide for more than half a century. The company has 60 locations in 33 countries and employs approximately 33,000 people. In the Americas, it operates 14 terminals across eight countries.