THE PORT OF CALLAO WILL RECEIVE A TOTAL INVESTMENT OF US$ 1,900 MILLION

Lima - May 5, 2023.- The port of Callao, Peru's most important port, will receive a total investment of US$ 1,900 million in its expansion and modernization, to be carried out by the concessionary companies of the South Pier and the North Pier, informed the Private Investment Promotion Agency (Proinversión).

The state agency said Friday that DP World, concessionaire of the South Pier, will invest US$ 350 million in Phase 2 of its expansion project to increase the terminal's total capacity by 80% and enable it to handle up to 2.7 million TEUs (unit of measurement for maritime transport) per year.

The announcement was made during a technical visit made by the executive director of Proinversión, José Salardi, and directors of the entity, to the Callao port terminals granted in concession under the Public-Private Partnership (PPP) modality.

The project “New Container Terminal-South Pier”, executed by DP World, was awarded in 2006 and, according to the Supervisory Board for Investment in Public Transport Infrastructure (Ositran), the benchmark investment as of April 12, 2023, is US$ 731.3 million, of which US$ 534.4 million has already been executed.
With the other US$ 350 million of the expansion project, 400 meters of additional pier will be built to reach a total length of 1,050 meters, which will allow receiving up to three ships at the same time, and the container yard will increase by 12 hectares to 40 hectares.

“The new terminal equipment arrives during 2023. The expansion of our capacity will take place from the end of 2023 and will be completed during 2024″, the company said before indicating that in 2022 the South Pier moved 1.4 million TEUs and, with the expansion, it will be able to reach up to 2.7 million TEUs.

Proinversión's technical team also visited the "Multipurpose North Terminal" in Callao, which was awarded in 2011, and noted that its operator, APM Terminals, plans to invest a total of US$ 1,208.4 million, without sales tax, in the six stages contemplated in the concession contract and the addendum executed on November 25, 2022.

This addendum comprises four new stages with investments of US$ 69.3 million, US$ 327.7 million, US$ 320 million and US$ 184.2 million, in each case.

“The first of the current ones is mandatory for the signature of the addendum, and the remaining three according to triggers of demand,” Proinversión reported.

The third stage involves the construction of a vertical clean grain silo battery with a total capacity of 60,000 tons, as well as the acquisition and installation of a silo operation system and two continuous grain dischargers.

Also, the construction of a minimum of 2.13 hectares of pavement for back-up areas and equipment to implement a general cargo access, preferably rolling, among other works.

According to the concessionaire’s estimates, the investment executed and accumulated to date in the “Multipurpose North Terminal” amounts to US$ 500 million and has generated more than 1,500 direct and more than 4,500 indirect jobs.

Proinversión highlighted that “these two important port projects have been the great support for the growth” of Peru’s foreign trade in the past 21 years when the total exported amount climbed from US$ 7,000 million in 2001 to US$ 65,800 million in 2022.

Source: Gestión