APM Terminals acquired the Panama Canal Railway Company from Canadian Pacific Kansas City, according to an April 2 press release.
The Panama Canal Railway is a 47-mile single-line railway adjacent to the canal, connecting the Atlantic and Pacific oceans, per the press release.
By adding the railway, APM Terminals, a unit of A.P. Moller-Maersk, aims to strengthen its logistics capabilities in Panama, an APM Terminals spokesperson told Supply Chain Dive.
In Panama, APM Terminals operates regional offices for the Americas, a Maersk Latin America regional office and a Maersk Americas ocean operations office, the spokesperson said. Maersk also opened a nearly 37,700-square-foot fulfillment center in the Panama Pacifico logistics park in 2022.
APM Terminals is in the process of upgrading the Panama Pacifico distribution center, the spokesperson said. The upgrades, expected to be completed by May, include expanding the facility to pver 215,000 square feet.
“Our focus remains on strengthening our existing network, investing in fleet renewal, and expanding our terminal footprint where it supports our customers and long-term growth,” the spokesperson said.
Panama Canal Railway will retain its brand, leadership and operational structure under APM Terminals’ ownership, the spokesperson said. The current management team will also remain in place.
“You can expect business as usual at PCRC, with no major changes to our operations,” they confirmed.
Meanwhile, CPKC will focus on growing its rail business in North America, President and CEO Keith Creel said in the press release. The railroad previously saw Panama as a growth market for its intermodal business amid persistent drought conditions at the Panama Canal.
