Maersk Acquires Operations of the Panama-Colón Train

Panama: APM Terminals, an independent division of Danish shipping company AP Moller-Maersk, announced the acquisition of Panama Canal Railway Company (PCRC). “Panama Canal Railway Company represents an attractive infrastructure investment that aligns with our core business of container handling,” said Keith Svendsen, CEO of APM Terminals. The acquisition of PCRC includes a renewed 25-year concession, allowing it to operate the 76-kilometer (47-mile) rail line alongside the Panama Canal, used primarily for cargo transport between the Atlantic and Pacific Oceans.

Panama city, Panama – Panama Canal Railway and Station. The Panama Railroad is the railway line that connects the Atlantic Ocean with the Pacific Ocean through Panama in Central America. The route stretches 48 miles (77 km) across the Isthmus of Panama, from Colón to Panama City (via Gatún, Bujio, Barbacoas, Matachin, and Summit. When it opened its doors in 1855 it was called the “interoceanic railway”, which was later described as the first transcontinental railway in the world.

In a statement dated April 2 from The Hague, APM Terminals indicated that, in 2024, this trans-isthmian railway generated revenues of $77 million and profits (EBITDA) of $36 million. Keith Svendsen, CEO of APM Terminals, stated, “The company is recognized for its operational excellence and will provide a significant opportunity that will allow us to offer a broader range of services to the global ocean freight customers we serve.” “We are pleased to have completed this transaction with APM Terminals, a division of A.P. Moller-Maersk , a strategic partner of Canadian Pacific Kansas City and a major customer of the Panama Canal Railway Company,” said Keith Creel, president and chief executive officer of Canadian Pacific Kansas City.

He added that “the sale of this asset creates value for our shareholders and reflects our commitment to optimizing our assets while we focus on growing our core rail business in North America, through our unparalleled tri-country network connecting Canada, the United States, and Mexico.” On January 21, President José Raúl Mulino met with Vincent Clerc, CEO of AP Moller – Maersk, to discuss strategies that will enable the shipping company to continue supporting Panama’s objectives of strengthening commercial competitiveness and modernizing the country’s port and logistics infrastructure.

At that meeting, which took place within the framework of the World Economic Forum in Davos, President Mulino and Clerc explored opportunities to advance sustainable port operations, leverage Panama’s strategic position to improve global connectivity, and offer innovative supply chain solutions aligned with Panama’s development priorities. In addition, Vincent Clerc expressed his interest in strengthening Maersk’s historic relationship with the country and deepening its commitment to Panama’s economic development, particularly in the modernization of port infrastructure and sustainable logistics operations. Today, Maersk handles approximately 35% of Panama’s import and export volumes, highlighting its pivotal role in positioning the country as a global trade hub.

The Extension of the Panama-Colón Train Concession

In September 2024, the Panama Maritime Authority (AMP) published in the Official Gazette an extension of the concession contract with the Panama Canal Railway Company to operate the railway between Panama City and Colón for a period of 25 more years. This extension was issued on February 9, 2023, during the previous term of President Laurentino Nito Cortizo, in which Noriel Araúz was the administrator of the AMP, but it was not until now that it was made public in the Official Gazette.

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