PPP INVESTMENTS IN PORTS WILL EXCEED US$ 3,500 MILLION
Lima, March 7, 2023 - With an investment of more than US$ 1,900 million, port infrastructure and services have been modernized in eight (8) ports under concession in Peru, between 2001 and 2022, through Public-Private Partnerships (PPP).
These investments have sustained the upturn of our foreign trade during the last 20 years, especially exports, which increased from US$ 7,000 million in 2001 to a record US$ 65,800 million in 2022, nine (9) times increase.
According to an OSITRAN report, with data as of February 21, 2023, the largest investments made were in the Multipurpose North Terminal of the Port of Callao (US$ 452 million), followed by the South Pier of the Port of Callao (US$ 440 million), Matarani Port Terminal (US$ 290 million), Paita Port Terminal (US$ 260 million), General San Martin Port Terminal in Pisco (US$ 182 million), and Salaverry Port Terminal (US$ 131 million), Paita Port Terminal (US$ 260 million), General San Martín Port Terminal in Pisco (US$ 182 million) and the Salaverry Multipurpose Port Terminal (US$ 131 million), whose financing has been recognized as the Transaction of the Year 2022 in Latin America under the Ports category by the London agency "Próximo".
The referential investments in the eight ports under PPP concession total US$ 3,000 million, and if we add to this amount the recent addendum of APM Terminals, the total committed investments will exceed US$ 3,500 million, and will be carried out in accordance with the terms of each concession contract. This will continue to boost the development of foreign trade and Peruvian exports.
Investments in ports have contributed to the increase in cargo traffic of terminals. Total average traffic grew from 20.1 million tons before the concessions (in 2001) to more than 52.4 million tons as of November 2022 (according to OSITRAN). In the case of the port of Callao, traffic increased from an average of 14.6 million tons before the concession to more than 30 million tons after the concession.
Port concessions through the PPP modality have also been reflected in improvements in port efficiency and productivity, generating lower costs for users and more space to accelerate their investments, allowing them to reach international markets in optimal time.
In the case of the new container terminal at the Port of Callao, cargo pick-up time was reduced by 20% (by the end of 2019) and hourly throughput increased by 52.8%. In the first four years of its concession, the Salaverry Multipurpose Port Terminal achieved a record mobilization of agricultural products in vessels of up to 45,000 tons per operation, and increased productivity by 35%, generating significant savings in the foreign trade logistics chain.
NEW PORT PROJECTS
The prospects for increased investments in concession ports are favorable, as are investments in new port terminals through PPP concessions. One of them is the new port of San Juan de Marcona, a self-sustainable unsolicited proposal that will require an investment of close to US$ 520 million. It is being structured at PROINVERSIÓN and is expected to be awarded, if no interested third parties present themselves, in the last quarter of 2023.
The port of San Juan de Marcona consists of the construction of a new port terminal for public use with international standards, specialized in providing storage and shipping services for iron and copper concentrates; handling up to 47 million metric tons of minerals and supplies from the main mining projects in the southern part of the country.
There is also the unsolicited proposal to modernize the Port of Chimbote, the last port project that entered PROINVERSIÓN's portfolio in February. The project will require an investment of close to US$ 180 million to modernize the infrastructure and port services that will enable the movement of products such as fishmeal, minerals, and agroindustrial production.
In this sense, there is a renewed interest in making Peruvian ports very competitive at a national and international level, positioning Peru as a hub in South America, even more so with the incorporation of the mega port of Chancay (Lima), which is currently under construction, with an investment of US$ 3,000 million.
Source: Press Release - PROINVERSIÓN