CPKC has sold the Panama Canal Railway Company to APM Terminals, an independent division of shipping giant A.P. Moller-Maersk. 

The Panama Canal Railway offers ocean-to-ocean freight and passenger services along the Panama Canal and has operated as a 50-50 joint venture between CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack since 1998. The terms of the transaction were not revealed. 

The 47-mile railroad was built in the 19th century but fell into disrepair during the 20th century. In the 1990s, the Republic of Panama awarded a contract to KCS to reconstruct the railroad and utilize it for intermodal transport. 

“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 unrivaled three-nation network connecting Canada, the United States and Mexico.”