Railroad mirrors canal's woes

economy

The Panama Canal Railway running through Gatun Lake. This, however, is a passenger rather than container train. The passenger train ride is a treat for anyone who hasn't taken it and an important service for Colon Free Zone commuters, but the heart of the railroad's business is moving containers among Panama seaports and the Colon Free Zone. Photo courtesy of Kansas City Southern, which owns a half interest in the railroad.

2009 saw sharp drop in container traffic by rail
by Eric Jackson

The Panama Canal Railway moved about one quarter of a million containers in 2009, and while that's a lot of cargo, it's about 25 percent less than in 2008. Last year was a bad time for the economy on a global scale, and the downturn in rail traffic here very closely reflected what the UN's Economic Commission for Latin America and the Caribbean reported as last year's regional business trend, a 24 percent decline in economic activity.

The Panama Canal Railway is half owned by Kansas City Southern, with the rest of the shares held by Mi-Jack Products. Kansas City Southern was in the black for the last quarter of 2009, although that quarter's profits were down from the same quarter in 2008. But the brights spot of profitability, Kansas City Southern said on its website, were cost reductions and a rebound in business for their Mexican railroad system.

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