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The Panama Canal Railway Co. (PCRC) recently invested $25 million to increase capacity for additional intermodal and passenger-rail business, according to an item posted on the Kansas City Southern News Web site Feb. 15.

To accommodate rising intermodal traffic, PCRC acquired seven locomotives (two SD40s and five SD60s), two RTG intermodal cranes, three Linde sideloaders and other equipment, such as tampers and trucks. The 47.6-mile railroad — which is jointly owned by Kansas City Southern and Panama Holdings L.L.C. — also extended the Atlantic and Pacific intermodal terminals from seven double-stack car lengths to 10 and added 16 double-stack cars.

To increase passenger-rail capacity, PCRC reconfigured seating inside cars operated by subsidiary Panarail Tourism, which provides luxury passenger-rail service for business commuters, tourists, the U.S. Navy and private charters.

Improved performance by Panamanian ports and increased cruise ship tourism last year prompted PCRC's intermodal traffic to jump 67.9 percent, container operations to more than double and passenger traffic to rise 12.3 percent compared with 2006 totals.