Cargo News Asia
9 June 2008
Peru is expanding its port and logistics infrastructure as it makes a strong pitch for China trade. DP World has already started construction of a terminal at Peru's main port Callao, 20 km from capital Lima.
In June 2006, DP World was awarded a 30-year concession to build and operate the new terminal. The first phase of the project will see around US$210 million invested in two berths comprising 660m of quay line and 22 hectares of yard, capable of handling vessels of 5,500 TEUs.
The first phase will be operational in the second half of 2009. Further development will be phased in, in line with demand, with total capacity projected to reach around 1.3 million TEUs.
The development will also see improvements to port related infrastructure including land access, widening of the port sea entrance, navigation aids, security and protection systems, and the development of logistic centres.
Callao is being upgraded to play the role of not only a transhipment port but also as a gateway port for the west coast of South America.
"Peru wants the port of Callao to be the point from which cargo is sent to other countries in the region," said Transport Minister Veronica Zavala. In the next six months, concessions will also be given to port operators for the development of Pisco and Paita, she added.
Investors from China and Japan are very interested in these ports, as well as in Marcona in Ica, Zavala claimed.
She said Paita needs an investment of $290 million for its development while $100 million is needed for upgrading Pisco. This does not include the large sums of money needed for developing the port road network.
Peru President Alan Garcia recently proposed to his Chinese counterpart Hu Jintao the construction of a deep-water port at Marcona and the use of Chinese technology to provide gantry cranes in 10 ports along Peru«s coastline.
China and Peru are also in talks on signing an air services agreement between the two countries to operate direct passenger and cargo flights between Guangzhou and Lima.
Following the signing of the agreements, Peru expects its exports to China, in value terms, to grow from $3 billion to $15 billion in the next seven years and imports from China to increase from $2.7 billion to $12 billion.
In anticipation of growing trade with China, Neptunia, a logistics operator, based at the port of Callao, is expanding its facilities. Neptunia moves both bulk and general cargo as well as 200,000 containers annually.
Neptunia chief executive officer Carlos Vargas Loret de Mola said, "We have purchased two rubber-tyred gantry cranes and upgraded the technology system in the container yard to Navis.''
He added that the company was planning to build a new container facility covering 12 hectares as well as a new warehouse with the latest state-of-the-art technology.
"We have been handling logistics, warehousing and distribution since 2000, and in the past two years we have more than doubled our capacity and penetration in the market,'' said Loret de Mola.
"We are now trying to provide a better and more efficient service to our customers. Our businss model enables us to provide customers with a one-stop-shop concept," he added.
Neputinia subsidiary Operadora Portuaria is currently developing a new port infrastructure north of Callao.
"This new port will be ready and operational during the first quarter of 2010," said Loret de Mola. It is a port for handling chemicals, such as sulphuric acid, grain and fertilisers with specialised berths for these commodities.
Loret de Mola said, "the ports are still government run and not vertically integrated so the need for container terminals and specialised infrastructure is more evident every day."
