Panama Canal Railway Company

Katherine Meyers & Tingyu Liu

Welcome to Panama Canal Railway Company• Introduction• History• Current Status• Travel Info• Interesting Facts• Operation• Answer Each team’s Questions

Introduction

Panama Canal Railway Company(PCRC)

Panarail Tourism Company

Kansas City Southern Mi-Jack Products

Introduction

Panama City

Colon

History

Construction began in 1850The Project cost $6,564,552.95

On Jan 28, 1855, the first train crossed the Isthmus

Current Status• Owned by Kansas City

Southern and Mi-jack Products, who were awarded a 50 year concession to rebuild/operate the railway(1998)

• $80 million invested in improvements

• Caters to business executives and tourists

• Capacity to transport 500,000 containers/year with expected increases of 250,000/year, until reach max. of 2 million TEU

Unique Passenger Cars• Each of the 5 passenger cars are named after a river in

Panama: Rio Indio, Rio Pequeni, Rio Gatun, Rio Mamoni and Rio Bayano

• 1938 Southern Pacific Dome Car, named Rio Chagres, that was remodeled at a cost of $1 million

• Each car holds 50 passengers

Interesting Facts• Total more than 12,000 people died in the

construction, the Railroad started “pickling” the bodies in barrels to be sold to medical schools

• During the first 12 years of operation, the railroad carried over $750,00,000 in gold dust, nuggets and gold and silver coins

• At $295 a share, the railroad was at one time the highest priced stock on the New York Stock Exchange

• Panama canal railway is the most expensive railroad ever built

Travel Info.• Travel Time: 1 hour• Monday-Friday• Departure time from Panama to Colon:

7:15 am• Departure time from Colon to Panama:

5:15 pm

Operation

• Capacity for ten trains each direction every 24 hours with possibility to increase to 32 run/day

• Operates double-stack bulkhead type rail cars in two sets of six, each set accommodating an average of 75 containers

• 47mile single-line track with few locations for 2 way traffic

• Lift equipment able to lift 90,000 pounds

Operation

Answer Each Teams’ Questions

Team 1What is the annual usage of the Panama Railway and has it been increasing or decreasing over time?

Answer:• In our opinion, the annual usage of the PCRC has

been increasing.• Because technologic improvement makes

transportation and travelling become easier

Answer Each Teams’ Questions

Team 2How is the railroad company going to be affected by the Panama Canal expansion in the next few years?

Answer:• In our opinion. traffic volume will be affected by the Canal

and decrease slightly• The railroad transportation will not be replaced• The railroad is used for commuters going to work and the

canal expansion has increased the number of jobs so it is possible the number of passengers has gone up lately

Answer Each Teams’ Questions

Team 3What is the competitive advantage of the railway over the canal?

Answer: • Alleviate Canal restriction related to draft, line of

sight or vessel size• Cargo can be transshipped from coast to coast

duty free

Answer Each Teams’ Questions

Team 41, What is the primary revenue for the Panama Railway Company today? Passenger or goods transport? 2, Is this a shift from what has been true in the past?

Answer:• In our opinion, goods transportation is primary.

Answer Each Teams’ Questions

Team 61, Is this railroad predominantly used for commercial shipping or for passenger transport?2, What would be cheaper solution to ship items in panama? The railway or the canal?

Answer:• We will find out during visit.

Reference• http://www.panarail.com/• http://www.mi-jack.com/• Kansas City Southern Notice and Proxy Statement

for Annual Meeting of Stockholders, May 3,2012

Thank you!