APM Terminals expands services with Panama Canal railway acquisition
Deal strengthens the company’s intermodal cargo transport operations across the Americas.
PANAMA – APM Terminals has finalized the purchase of the Panama Canal Railway Company (PCRC), a key infrastructure asset that connects the Atlantic and Pacific coasts of Panama.
The seller, Canadian Pacific Kansas City Limited (CPKC), along with Lanco Group/Mi-Jack, confirmed the handover this week.
PCRC operates a 47-mile railway line that runs next to the Panama Canal, playing a central role in moving containers between ports on either side of the isthmus.
Last year, the company recorded revenues of US$77 million and an earnings before interest, tax, depreciation, and amortization (EBITDA) of US$36 million.
Strategic fit for APM Terminals
For APM Terminals, the acquisition adds a valuable asset to its wide network of port and logistics services. The company, which is part of A.P. Moller-Maersk, now operates 60 terminals globally.
Its core work includes managing container terminals and providing intermodal logistics and supply chain services.
“The acquisition of the Panama Canal Railway Company is an attractive infrastructure investment for us, aligning perfectly with our core services in intermodal container movement,” said Keith Svendsen, CEO of APM Terminals.
“The company is well-regarded for its operational excellence, and this acquisition will allow us to provide a broader range of services to our global shipping customers.”
This move adds weight to APM Terminals’ strategy of offering end-to-end logistics solutions while reinforcing its commitment to moving cargo efficiently through key trade corridors.
CPKC refocuses on North America
Keith Creel, President and CEO of CPKC, stated that the sale allows the company to better focus on its main operations.
“We are pleased to finalize this deal with APM Terminals, part of A.P. Moller-Maersk, which is not only a strategic partner for CPKC but also a major customer of the Panama Canal Railway Company,” he said.
“Selling this non-core asset generates value for our shareholders and underscores our commitment to optimizing our assets while focusing on expanding our core North American rail business through our unique three-nation network that connects Canada, the United States, and Mexico.”
The sale fits into a broader plan by CPKC to concentrate resources on its continental operations, which have seen growth since the merger of Canadian Pacific and Kansas City Southern.
A broader expansion plan
APM Terminals has also emphasized its focus on reducing its environmental impact. The company has committed to reaching net-zero emissions by 2040, a goal that aligns with growing demand for greener transport options in global trade.
The PCRC acquisition marks another step in APM Terminals’ recent expansion efforts, giving the company a stronger presence in Central America while deepening its reach across both ocean and land transport routes.
This development follows a string of investments aimed at strengthening APM Terminals’ cargo handling capacity and improving its global service offering.
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