Canadian Pacific Kansas City Limited (CPKC) has announced the sale of the Panama Canal Railway Company (PCRC) to APM Terminals, a division of A.P. Moller * Maersk. The PCRC, a 50/50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack, generated revenue of US$77 million and EBITDA of US$36 million in 2024. The sale of this non-core asset is part of CPKC's strategy to optimize its assets and focus on growing its core North American rail business.
APM Terminals, with a presence in 33 countries and employing approximately 33,000 people, sees PCRC as an attractive infrastructure investment aligned with its core services of intermodal container movement. The company intends to offer a broader range of services to its global shipping customers through this acquisition.
The PCRC was formed in 1998 and operates a 47-mile railway adjacent to the Panama Canal, providing ocean-to-ocean freight and passenger services. Its strategic location as a north-south railway traversing the isthmus of Panama between the Atlantic and Pacific oceans makes it a significant part of Panama’s logistics network.
BofA Securities, Inc. and Lazard Frères & Co. served as financial advisors to PCRC, CPKC, and Lanco Group/Mi-Jack during the transaction, with Sullivan & Cromwell LLP providing legal counsel.
CPKC, the first and only single-line transnational railway linking Canada, the United States, and Mexico, operates approximately 20,000 route miles and employs 20,000 railroaders. The company offers a suite of freight transportation services, logistics solutions, and supply chain expertise.
Following the sale of PCRC to APM Terminals, CPKC remains committed to its focus on expanding its core North American rail business, leveraging its unrivaled three-nation network connecting Canada, the United States, and Mexico. The market has reacted to these announcements by moving the company's shares -2.6% to a price of $70.6. For more information, read the company's full 8-K submission here.
