The experts’ view: challenges, opportunities, and the path to AAPA LATAM PERU 2025

In June, the AAPA LATAM Congress, the iconic event for the Latin American port industry, will be held in Lima, Peru. In addition to the highlights of tours of two of its key infrastructure centers, the Port of Callao and the new Port of Chancay, it will also feature an incredible conference agenda ranging from the most global to the most specific, always of interest to the industry’s stakeholders who will be attending the event in large numbers. It will also feature top-level exhibitors.

The conference program ranges from an analysis of the global economic outlook and its impact on demand in the maritime and port industry; to success stories in sustainability and decarbonization in port operations, as well as the challenges of automation and technology, including the redefinition of global ports and examples of expansion in this area in Latin America; the perspectives of the main cargo generators and new shipping alliances; and innovation and resilience for container and bulk terminals; as well as the challenges facing the cruise industry and port cities in the era of logistics integration.

References 

Specifically, we consulted with three prominent figures who will be participating in the conference panels. They are: Juan Carlos Paz Cárdenas , Chairman of the Board of Directors of the National Port Authority of Peru and member of the Board of Directors of AAPA LATAM; Dinesh Sharma , General Manager of Drewry, the renowned global shipping consultancy; and Carlos Urriola , port expert and member of the Board of Directors of AAPA LATAM. Here, they discuss the significance of Peru’s selection as a port hub and host of the conference; the challenges and opportunities presented for Latin America in the current context of geopolitical and commercial uncertainty; and how this impacts the port and maritime industry in Latin America. They also discuss how shipping alliances are influencing logistics chains and ports.

For Juan Carlos Paz, 2024 has been a momentous year for Peruvian port development. “The inauguration of the Chancay Multipurpose Port Terminal will mark a milestone in connectivity with Asia, enabling direct routes to Shanghai in just 23 days. Likewise, the Callao Bicentennial Pier, 1,050 meters long and fully electrified, strengthens the operational capacity of the country’s most important port. Added to this are new investments in both Chancay and Callao, as well as in regional, sea, and river ports ,” he notes.

He adds that this growth has consolidated Peru’s competitiveness in global trade, with exports exceeding USD 74 billion, of which USD 12.7 billion corresponds to agricultural exports. “We have positioned ourselves as leaders in products such as blueberries and grapes, and among the main exporters of avocados and mangoes. Furthermore, we are the seventh country in terms of transit volume through the Panama Canal ,” he emphasizes.

Specifically, he says these achievements have made Peru a key player in logistics and international trade, making the selection of Lima as the host of the AAPA LATAM 2025 Congress a strategic opportunity to showcase our growth and leadership in the port sector.

Regarding how Latin American countries can position themselves in a challenging global geopolitical and commercial context, Paz acknowledges that uncertainty is a constant in economic and geopolitical history, and each country must define clear strategies to turn challenges into opportunities. He emphasizes that in recent years, Peru has strengthened its commercial integration through 23 Free Trade Agreements (FTAs) with the world’s leading economies, including the United States, China, and the European Union. Likewise, through effective strategies in foreign trade, agricultural exports, mining, and port development, he says Peru has managed to consolidate a path of sustained growth. Despite global uncertainties, a clear vision and well-structured policies allow us to remain competitive and continue expanding our presence in international markets.

“Our port model is a benchmark in the region, with investments from 18 countries, including the United States, the United Kingdom, Brazil, Spain, Mexico, the Netherlands, Turkey, the United Arab Emirates, China, and Australia. Our concession policy has been successful, with eight concessions already granted, a ninth in the process of being signed, and the 30-year extension of the Matarani Port Terminal concession,” he explains.

Specifically, regarding the objectives of streamlining times and reducing costs, reducing congestion and pollution, and creating a more population-friendly port and transportation system, he emphasized: “Strengthening the Peruvian port system requires a comprehensive approach that encompasses infrastructure, logistics, and connectivity with the hinterland. The National Port Authority (APN), through the National Port Development Plan (PNDP), works in close coordination with the Ministry of Transport and Communications (MTC) and its National Plan for Transport Logistics Services and Infrastructure to 2032. ”

He also emphasized that one of the key objectives is to improve port-city connectivity through the development of road and rail infrastructure. “Important logistics corridors have been planned, such as the road connection between Chancay and Callao, the Eten-Cajamarca railway, the San Juan de Marcona-Apurímac railway, the Barranca-Lima railway (passing through Callao and Chancay), and the Chancay-Pucallpa railway. Furthermore, Peru’s highly flexible cabotage legislation opens up new opportunities to integrate regional ports with the country’s main logistics hubs, facilitating access to international markets. With these initiatives, we are moving toward a more efficient, sustainable, and competitive port system, aligned with global trade and logistics trends . ”

Trends and challenges

For his part, Dinesh Sharma of Drewry highlights that Latin America has seen strong growth in port throughput in recent years. “Compared to January 2019 levels, that growth was 30%. Furthermore, the 12-month average growth rate reached 11.1% last December, nearly double the global average of 6.1% ,” he says.

Specifically in Peru, in the last two years, traffic at the most important ports, such as Callao, has increased by up to 25%, and in other cases, such as the Paracas Port Terminal, that percentage has quadrupled, he explains. “This growth is primarily a reflection of investments in infrastructure and equipment, which lead to both increased capacity and improved efficiency ,” he warns.

He understands that, in Latin America, investments in logistics infrastructure are challenging and extremely important to respond to the region’s growth. “These challenges are both geographic and demographic, as well as for export revenues, especially for commodities and perishables, where logistics costs and the time/efficiency ratio are key components of competitiveness,” he insists.

He emphasizes Peru’s importance in terms of container movement. It should not be forgotten, he recalls, that more than half of the 7 million TEUs of additional capacity planned for addition over the next five years along the West Coast of Latin America, from Mexico to Chile, are in Peru. “This country plays and will play not only an important and growing role as a hub for itself, but also as a hub for the region,” he says.

Regarding the uncertain global geopolitical and trade situation and how it affects the shipping and port industry, he points out that there has been a fundamental shift. “From a world of relative predictability to one where, first, geopolitical risk is high and, second, geopolitical competition is intense. Trade policy there is leading to a growing competitive battleground. This is also leading to strong fragmentation among these competitors and economic blocs. The current geopolitical environment presents two risks: high volatility and, therefore, great uncertainty; but at the same time, opportunities for Latin America. To face these challenges, the region is especially resilient in commodity exports with trade exposure to many countries, where competitiveness has a lot to do with logistics costs and efficiency,” he explains .

The current outlook for the Drewry region is for 6 million TEUs of throughput to be added over the next five years. Given the planned capacity addition in the region, utilization is likely to remain unchanged during that time, says Sharma.

“Recent history has shown the global uncertainty that has led to bottlenecks in supply chains, and thus investments in logistics infrastructure to better deal with this volatility and uncertainty will be key. Another consequence of this intense geopolitical competition will be large-scale exports stemming from excess industrial capacity. One opportunity for the region may be to participate more in value supply chains through greater integration into logistics infrastructure, bringing cost competitiveness and efficiency to these chains,” he argues.

More specifically, regarding how it affects ports and terminals, he points out that they are operating in a highly dynamic environment. “The combination of demand peaks and supply chain disruptions result in vessel call delays, deteriorating schedule integrity, high volumes, and a lack of intermodal capacity. All of this is a testing task for port and terminal operators, who must be prepared to face this highly volatile environment. We have seen the consequences of this situation through the impact on operational productivity. The need to find greater operational and capacity efficiencies across the entire terminal process footprint will lead them to a greater push toward digitalization and automation ,” he explains.

Finally, he notes that container terminal operators are increasingly transitioning their operations from a traditional business model, or only within limits, to become fully integrated into global supply chains in response to a highly competitive landscape.

Opportunities

Regarding the importance of Peru as the host of the AAPA LATAM meeting, Carlos Urriola , director of AAPA LATAM and the CARRIX terminal group, points out that Peru has been a key hub for global trade since colonial times. “The investments in the Callao and Chancay expansions confirm their role as a maritime hub for cargo distribution. In addition to port infrastructure, continued investment in roads, railways, and logistics parks is needed to make Peru an even more successful hub. The selection of Lima for the AAPA Congress will be an excellent opportunity to discuss local and regional projects ,” he added.

Regarding the challenges posed by geopolitical and global trade uncertainty for Latin America, he maintains: “We must continue to increase trade among the countries in the region and keep it highly competitive in terms of costs and connectivity. There are variables that our countries cannot control; but we must focus on maintaining and increasing the efficiency of our systems to move all types of cargo in a ‘green’ way ,” he argues.

Finally, regarding the impact of the large container shipping alliances that dominate the logistics and port markets, he believes that most of them are born and die before their expiration date. He maintains that two phenomena are occurring in the region regarding this issue: “On the one hand, the alliances are experimenting with vessel networking using transshipment, and others with direct services. This is a major change in the region. On the other hand, shipping lines are operating several port terminals, and there are very few port operators that are not part of the structures of these lines.”

Thus, it is understood that competition levels will be very strong, and governments must ensure fair competition among all actors in the logistics chain.

A strategic meeting for the entire region

AAPA LATAM 2025 will be a privileged space for regional dialogue, strategic analysis, and the exchange of experiences among the various players in the logistics and port chain.
From June 24 to 27, Lima will be the venue where new ideas, future projects, and key decisions will converge to build a more resilient, efficient, and connected industry.

More information: https://www.aapalatam.org/congreso/ 

Sharing is caring!