Ports taking lion’s share of Peru transport infra investments

Construction works, tenders and proposals to develop port infrastructure in Peru are advancing steadily, with a number of ongoing and developing projects expected to keep investments coming in thick and fast in 2023 and 2024.

According to the latest report from transport regulator Ositran, investments in the port sector amounted to US$117mn in January-February, which was equivalent to 91% of the total spending for all transportation infrastructure (US$129mn) – roads, ports, trains and airport projects – in the period.

The figure is also almost equal to the US$119mn invested in ports in all of 2022 and was largely due to three projects: the expansion of the south pier container terminal at Callao port, the expansion of the northern terminal at the same port and the modernization of Salaverry port terminal in Trujillo, northern Peru.

ADVANCES

The majority of the money went to the Callao south dock expansion, which received US$93mn in the first two months of 2023, doubling the amount spent on the initiative in the whole of 2022 (US$44mn).

The expansion has reportedly progressed 53% and will be ready in September 2024, according to the transport and communications ministry (MTC). The terminal has now received investments of US$532mn of a total estimated project cost of US$731mn.

Meanwhile, US$6.0mn was spent on the expansion of Callao port’s north terminal in February and another US$13.5mn in January. That took the amount spent on the development since 2017 to US$458mn of the projected US$896mn total.

Salaverry port terminal in Trujillo, La Libertad region, received US$4.6mn in January-February, bringing the total spent on the initiative to US$134mn.

The main works were recently completed and inaugurated. According to investment promotion agency ProInversión, the total investment will be US$270mn and the project has already increased the productivity of the port by 70%.

“Salaverry is located adjacent to a very prosperous area that’s very rich in agricultural exports. There will be a significant increase in cargo volumes and the port will have greater connectivity,” Juan Carlos Paz, a transport and logistics specialist and former general director of water transport at the MTC, told BNamericas.

Lastly, another important project that is underway is the extensive Chancay port development north of Lima. The US$3.6bn initiative was reported to have advanced 30% in early March, and the board of polymetallic miner Volcan recently approved financing of up to US$975mn for the port developer Cosco Shipping Ports Chancay Perú, in which it is a 40% owner, to fund the works.

The development will require a first-stage investment of approximately US$1.3bn and is expected to be ready by the end of 2024.

PROJECTS IN THE PIPELINE

There are various other port initiatives for which calls to participate are expected to be made in the short term. One of them is the San Juan de Marcona port terminal, a US$520mn project in Ica region which is scheduled to be awarded directly in October this year.

Also, the modernization of Chimbote port in Áncash region has been included in the ProInversión portfolio and the agency wants to award the construction contract in the medium term. The project is still being drawn up and is thought to require investments of up to US$180mn.

Lastly, the new San Nicolás pier, a US$350mn initiative to be developed by iron ore miner Shougang Hierro Perú in Ica region, is also on the table. Although the project received authorization from port authority APN in mid-January, works have not yet started.

Danny Cárdenas, the coordinator responsible for the APN office in San Nicolás, told BNamericas that Shougang is choosing the company to carry out the works. According to a company executive, construction is currently expected to begin in 1Q24.

Source: BnAmericas

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