CPKC and Lanco Group/Mi-Jack sell Panama Canal Railway Company to APM Terminals
CPKC (TSX: CP, NYSE: CP) and Lanco Group/Mi-Jack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, a division of A.P. Moller - Maersk. PCRC, which generated US$77 million in revenue and US$36 million in EBITDA in 2024, has been operating as a 50/50 joint venture since 1998.
The railway operates a strategic 47-mile track along the Panama Canal, providing ocean-to-ocean freight and passenger services. This divestment aligns with CPKC's strategy to focus on its core North American rail operations spanning Canada, the United States, and Mexico.
APM Terminals, which operates 60 locations across 33 countries, views PCRC as an attractive infrastructure investment that complements their intermodal container movement services. The acquisition is expected to enhance their service offerings to global shipping customers.
CPKC (TSX: CP, NYSE: CP) e Lanco Group/Mi-Jack hanno venduto la Panama Canal Railway Company (PCRC) ad APM Terminals, una divisione di A.P. Moller - Maersk. La PCRC, che ha generato 77 milioni di dollari di ricavi e 36 milioni di dollari di EBITDA nel 2024, opera come una joint venture al 50/50 dal 1998.
La ferrovia gestisce un'importante tratta di 47 miglia lungo il Canale di Panama, offrendo servizi di trasporto merci e passeggeri da oceano a oceano. Questa dismissione è in linea con la strategia di CPKC di concentrarsi sulle sue operazioni ferroviarie principali in Nord America, che comprendono Canada, Stati Uniti e Messico.
APM Terminals, che opera in 60 località in 33 paesi, considera la PCRC un investimento infrastrutturale attraente che completa i loro servizi di movimentazione di contenitori intermodali. Si prevede che l'acquisizione migliori la loro offerta di servizi ai clienti globali della spedizione.
CPKC (TSX: CP, NYSE: CP) y Lanco Group/Mi-Jack han vendido la Panama Canal Railway Company (PCRC) a APM Terminals, una división de A.P. Moller - Maersk. La PCRC, que generó 77 millones de dólares en ingresos y 36 millones de dólares en EBITDA en 2024, ha estado operando como una empresa conjunta 50/50 desde 1998.
El ferrocarril opera una vía estratégica de 47 millas a lo largo del Canal de Panamá, proporcionando servicios de carga y pasajeros de océano a océano. Esta desinversión se alinea con la estrategia de CPKC de centrarse en sus operaciones ferroviarias principales en América del Norte, que abarcan Canadá, Estados Unidos y México.
APM Terminals, que opera en 60 ubicaciones en 33 países, ve a la PCRC como una inversión en infraestructura atractiva que complementa sus servicios de movimiento de contenedores intermodales. Se espera que la adquisición mejore su oferta de servicios a los clientes de envío globales.
CPKC (TSX: CP, NYSE: CP)와 Lanco Group/Mi-Jack이 파나마 운하 철도 회사 (PCRC)를 APM 터미널에 매각했습니다. APM 터미널은 A.P. Moller - Maersk의 부서입니다. PCRC는 2024년에 7,700만 달러의 수익과 3,600만 달러의 EBITDA를 기록했으며, 1998년부터 50/50 합작 투자로 운영되고 있습니다.
이 철도는 파나마 운하를 따라 47마일의 전략적 노선을 운영하며, 대양 간 화물 및 승객 서비스를 제공합니다. 이번 매각은 CPKC가 캐나다, 미국, 멕시코에 걸친 북미 철도 운영에 집중하려는 전략과 일치합니다.
APM 터미널은 33개국에 60개 위치를 운영하며, PCRC를 그들의 컨테이너 간선 서비스에 보완하는 매력적인 인프라 투자로 보고 있습니다. 이 인수는 글로벌 배송 고객에게 제공하는 서비스 향상에 기여할 것으로 예상됩니다.
CPKC (TSX: CP, NYSE: CP) et Lanco Group/Mi-Jack ont vendu la Panama Canal Railway Company (PCRC) à APM Terminals, une division de A.P. Moller - Maersk. La PCRC, qui a généré 77 millions de dollars de revenus et 36 millions de dollars d'EBITDA en 2024, fonctionne en tant que coentreprise à 50/50 depuis 1998.
Le chemin de fer exploite une ligne stratégique de 47 miles le long du canal de Panama, offrant des services de fret et de passagers de l'océan à l'océan. Cette cession s'inscrit dans la stratégie de CPKC de se concentrer sur ses opérations ferroviaires principales en Amérique du Nord, couvrant le Canada, les États-Unis et le Mexique.
APM Terminals, qui opère dans 60 lieux à travers 33 pays, considère la PCRC comme un investissement d'infrastructure attrayant qui complète ses services de mouvement de conteneurs intermodaux. L'acquisition devrait améliorer leur offre de services aux clients expéditeurs mondiaux.
CPKC (TSX: CP, NYSE: CP) und Lanco Group/Mi-Jack haben die Panama Canal Railway Company (PCRC) an APM Terminals verkauft, eine Division von A.P. Moller - Maersk. Die PCRC, die im Jahr 2024 einen Umsatz von 77 Millionen US-Dollar und ein EBITDA von 36 Millionen US-Dollar erwirtschaftete, ist seit 1998 als 50/50-Joint Venture tätig.
Die Bahn betreibt eine strategische Strecke von 47 Meilen entlang des Panama-Kanals und bietet Fracht- und Passagierdienste von Ozean zu Ozean an. Diese Veräußerung steht im Einklang mit der Strategie von CPKC, sich auf seine Kernaktivitäten im nordamerikanischen Schienenverkehr zu konzentrieren, die Kanada, die Vereinigten Staaten und Mexiko umfassen.
APM Terminals, das an 60 Standorten in 33 Ländern tätig ist, sieht die PCRC als eine attraktive Infrastrukturinvestition, die ihre intermodalen Containerbewegungsdienste ergänzt. Der Erwerb wird voraussichtlich das Dienstleistungsangebot für globale Versandkunden verbessern.
- Sale of non-core asset to optimize portfolio and focus on core North American operations
- PCRC demonstrated strong financial performance with US$77M revenue and US$36M EBITDA in 2024
- Transaction creates immediate shareholder value
- Loss of recurring revenue stream from PCRC operations
- Reduction in geographical diversification of business operations
Insights
CPKC's sale of its 50% stake in the Panama Canal Railway Company represents a strategic move to shed non-core assets following the Canadian Pacific-Kansas City Southern merger. The divested railway generated
While the transaction price remains undisclosed, this divestiture aligns with CPKC's post-merger strategy of concentrating resources on its unique tri-national network connecting Canada, the United States, and Mexico. The sale to APM Terminals, a division of A.P. Moller-Maersk, is particularly strategic as Maersk is both a key CPKC partner and a major PCRC customer, potentially strengthening this valuable relationship.
This transaction reflects typical post-merger portfolio optimization, where companies divest peripheral assets to focus on their core competitive advantages. For CPKC, the value proposition centers on their unrivalled North American rail network rather than the Panama operation, despite its profitability. The financial impact appears modest relative to CPKC's
PCRC provides ocean-to-ocean freight and passenger services along the Panama Canal and has 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 PCRC generated revenue of
"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
"Lanco is very proud to have worked with CPKC and A.P. Moller - Maersk over the past several years," said Mike Lanigan, Chief Executive Officer of Lanco Group/Mi-Jack. "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,
"PCRC represents an attractive infrastructure investment in the region aligned to our core services of intermodal container movement," said Keith Svendsen, CEO, APM Terminals. "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
APM Terminals has developed and operated advanced container terminals around the world for more than half a century. The company operates in 60 key locations in 33 countries, employing approximately 33,000 people. In the
Advisors
BofA Securities, Inc. and Lazard Frères & Co. are serving as financial advisors to PCRC, CPKC, and Lanco Group/Mi-Jack, and Sullivan & Cromwell LLP is serving as legal counsel.
About CPKC
With its global headquarters in
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SOURCE CPKC
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