PPP INVESTMENTS IN PORTS GENERATE GREATER PRODUCTIVITY AND BOOST FOREIGN TRADE
Lima, August 23, 2021.- The Private Investment Promotion Agency has carried out an evaluation of the impact of Public-Private Partnerships (PPP) in the economic development of the country and in specific segments. One of them is the port sector where investments through the PPP modality have generated greater productivity and a boost in foreign trade.
Eight ports of Peru under concession were evaluated through the mechanism of Public-Private Partnerships, and it was identified that they generated significant direct and indirect investment flows for the country and were the key condition for the take-off of Peruvian exports, especially non-traditional exports.
In fact, between 2001 and 2020, total exports have increased six (6) times, from US$ 7,000 million in 2001 to US$ 42,400 million in 2020. Similarly, exports of non-traditional products grew from US$ 2,100 million in 2001 to US$ 12,800 million in 2020. And our exportable basket diversified considerably. For example, in 2019, we became the world's leading producer of blueberries and quinoa and the second in asparagus. Even, despite the pandemic and restrictions on movement, blueberry exports in 2020 increased 22.4%, grapes 20.9% and other canned fruits and vegetables 13%.
How have we achieved this successful performance?
First, the ports created enormous direct and indirect investment opportunities. Between 2001 and the first half of 2021, the eight ports generated a direct investment flow of US$ 1,726 million. However, the improvement and expansion of the ports was only the starting point for complementary and indirect investments such as roads, warehouses, trailers, among others, which boosted economic growth and productive diversification towards other products of high international demand, such as avocados, blueberries and asparagus.
Second, port concessions increased the installed capacity to export, but also improved their efficiency, which generated significant cost reductions for companies. For example, the exported cargo has multiplied almost three (3) times in the last 20 years, going from 17,095 thousand tons in 2001 to 48,517 thousand tons in 2020.
Regarding the efficiency indicators, by the end of 2019, cargo removal time was reduced by 20% and the performance per hour increased 52.8% in the new Callao container terminal. These efficiency improvements have only translated into lower costs for exporting companies and more space to accelerate their investment pace.
What's next?
Currently, seven (7) maritime ports and one river port are under concession, which will continue to change the dynamics of Peruvian exports in all regions of Peru (see Annex). In fact, the total of committed investments amounts to US$ 2,811.7 million (including VAT), which are being gradually executed in accordance with the concession contracts signed by the investors and the State in each case. In particular, the expansion of Muelle Sur in Callao and the modernization of the Salaverry port will accelerate the pace of exports in two central axes.
For more information about PROINVERSIÓN you can visit our promotional website: https://www.investinperu.pe
Source: Press Release - PROINVERSION