CPKC and Lanco Group/Mi-Jack sell Panama Canal Railway Co. joint venture

Canadian Pacific Kansas City Ltd. and Lanco Group/Mi-Jack have sold their joint venture Panama Canal Railway Co. to APM Terminals, a global terminal operator and division of A.P. Moller - Maersk.

Financial terms of the deal were not immediately available.

PCRC provides ocean-to-ocean freight and passenger services along the Panama Canal.

CPKC subsidiary Kansas City Southern and Lanco Group/Mi-Jack formed the joint venture in 1998 when it was awarded a concession to reconstruct and operate the railway, adjacent to the canal.

It extends 76 kilometres from the Atlantic to the Pacific.

CPKC chief executive Keith Creel says the sale of the non-core asset creates value for shareholders and reflects the company's commitment to optimize its assets.