APM Terminals expands footprint with Panama Canal Railway acquisition

Part of the Danish shipping and logistics giant AP Moller-Maersk, APM Terminals announced on 2 April it had acquired PCRC from Canadian Pacific Kansas City Ltd (CPKC) and the Lanco Group/Mi‑Jack.

Dating back to the 1850s, PCRC operates a 76-km single-line railway adjacent to the Panama Canal, primarily facilitating cargo movement between the Atlantic and Pacific Oceans. In 2024, the company generated revenues of US$77M and an EBITDA of US$36M.

APM Terminals chief executive Keith Svendsen described the acquisition as “an attractive infrastructure investment in the region aligned to our core services of intermodal container movement.”

For CPKC, the sale represents the divestment of a “non-core asset,” according to its president and chief executive, Keith Creel, who emphasised the company’s focus on expanding its “core North American rail business through our unrivalled three-nation network connecting Canada, the United States and Mexico”.

Strengthening logistics footprint in Panama

“APM Terminals will review potential future developments to enhance Panama’s logistics infrastructure, ensuring an operation capable of increasing rail capacity and overall containers to and through Panama” a spokesperson told Riviera, when asked about further plans following the latest acquisition.

AP Moller-Maersk has a significant presence in Panama, with regional offices and a fulfillment center. Established in 1992, the Panama office hosts the APM Terminals Americas Regional Offices, Maersk Latin American regional office, Maersk Americas Ocean Operations office, employing around 600 people.

In 2022, Maersk opened a 3,500 sqm fulfillment center in the Panama Pacifico logistics park, strategically located 30 km from the capital with access to key highways, ports, and airports. 

By May 2025, Maersk’s Panama Distribution Centre at Panama Pacifico will be upgraded to a state-of-the-art facility spanning 20,000 sqm.

According to a corporate presentation, APM Terminals currently operates a portfolio of 60 terminals and ports across 33 countries. The company reported revenues of US$4.5Bn in 2024.

Geopolitical tensions surround the Panama Canal

The Panama Canal has become a focal point of geopolitical debate since the new US administration took office.

A major port deal, signed in early March between Hong Kong-based CK Hutchison Holdings – operator of key Panama Canal ports – and a consortium involving BlackRock and MSC, followed remarks by President Trump suggesting the US should reclaim control of the strategic waterway.

China has strongly criticised the deal, calling it an attempt by Washington “to use national power to infringe upon the legitimate rights and interests of other nations”.

In response to the backlash, media reports indicate CK Hutchison Holdings has delayed signing the agreement with the BlackRock-MSC consortium, which was originally scheduled for 2 April. Meanwhile, Chinese antitrust regulators have launched an investigation into the transaction.