The recently signed free trade agreement between Peru and China looks set to be the catalyst which drives greater growth of Peruvian port facilities.
Peru's President Alan García last Friday announced that, because of November's signings, China will consider Peru a “priority” and “privileged” partner for investments, foreign trade and tourism.
Such a move, urged García, accelerates the need for rapid port development in the country.
Business News Americas pointed out that García himself had met with representatives from some 80 Chinese companies, promoting investments in several sectors including port infrastructure itself.
Reports have quoted Peruvian authorities laying out a fivefold increase in the volume of exports to China, a scenario that would up the current $2.5 billion worth of products sold to China to some $12 billion.
China is already Peru's second largest export destination after the US.
Analysts agree that such a jump in trade volumes could drive Peruvian port development significantly as terminals would need capacity and efficiency to handle large jumps in cargo throughput over the short term.
Peruvian Transport and Communications Minister Verónica Zavala had early this year said construction work on DP World's Muelle Sur container terminal in Peru's busiest port of Callao will begin on March 17.
The country's Agencia de Promoción de la Inversión Privada (Proinversion) and the Autoridad Portuaria Nacional (APN) had in June 2006 awarded DP World Callao a 30-year concession to develop and operate a new container terminal in Callao port's 'southern zone'.
DP World officials say Callao is the largest and fastest growing container port on the west coast of South America with a compound annual growth rate of over 14% per annum since 2000.
The new facility will initially be constructed with two berths comprising 660m of quay line and 22 hectares of yard, which, depending on permits and approvals, could be operational as early as the second half of 2009.
Further development will match demand growth with total capacity projected to reach 1.35 million TEUs.
Preliminary estimates of capital expenditure are approximately $210 million for the first two berths. The berths will initially be capable of handling vessels of 5,500 TEU nominal capacity.
Recent reports said that DP World Callao expects to start operations at Muelle Sur by 2010.
Elsewhere in Peru, local reports say that tenders for a contract to develop and run Peru's northern port of Paita are scheduled to be released this year.
Government officials expect the port of Paita, the second biggest in Peru, “to become Brazil's exit to Asia,” said Zavala.
Port expansion at Paita will complement the 955 kilometre highway project, which will run across six northern departments.
Paita's container terminal currently handles about 100,000 TEUs per year and authorities are expecting the incoming operator to greatly increase capacity and throughput.
The port's concession has undergone several delays with the Autoridad Portuaria Nacional (APN) and state agency for private investment promotion ProInversion taking longer than expected to update Peru's national port development plan.
García has criticized ProInversion for the delays, calling on officials to boost privatization efforts and launch more new state infrastructure concessional processes.
The Peruvian government has also decided to bring forward an auction for the concession to operate Peru's southern port of Pisco.
Pisco is a general cargo port, handling liquid natural gas (LNG), metals and agricultural produce.
The port was badly damaged last August by the country's worst earthquake in more than 30 years.
Proinversion director David Lemor said: “We're going to place priority on projects in the Pisco area, such as the port and a highway to the highlands. It's important that the port is competitive so that exporters have lower costs.”
Peru's President Alan García last Friday announced that, because of November's signings, China will consider Peru a “priority” and “privileged” partner for investments, foreign trade and tourism.
Such a move, urged García, accelerates the need for rapid port development in the country.
Business News Americas pointed out that García himself had met with representatives from some 80 Chinese companies, promoting investments in several sectors including port infrastructure itself.
Reports have quoted Peruvian authorities laying out a fivefold increase in the volume of exports to China, a scenario that would up the current $2.5 billion worth of products sold to China to some $12 billion.
China is already Peru's second largest export destination after the US.
Analysts agree that such a jump in trade volumes could drive Peruvian port development significantly as terminals would need capacity and efficiency to handle large jumps in cargo throughput over the short term.
Peruvian Transport and Communications Minister Verónica Zavala had early this year said construction work on DP World's Muelle Sur container terminal in Peru's busiest port of Callao will begin on March 17.
The country's Agencia de Promoción de la Inversión Privada (Proinversion) and the Autoridad Portuaria Nacional (APN) had in June 2006 awarded DP World Callao a 30-year concession to develop and operate a new container terminal in Callao port's 'southern zone'.
DP World officials say Callao is the largest and fastest growing container port on the west coast of South America with a compound annual growth rate of over 14% per annum since 2000.
The new facility will initially be constructed with two berths comprising 660m of quay line and 22 hectares of yard, which, depending on permits and approvals, could be operational as early as the second half of 2009.
Further development will match demand growth with total capacity projected to reach 1.35 million TEUs.
Preliminary estimates of capital expenditure are approximately $210 million for the first two berths. The berths will initially be capable of handling vessels of 5,500 TEU nominal capacity.
Recent reports said that DP World Callao expects to start operations at Muelle Sur by 2010.
Elsewhere in Peru, local reports say that tenders for a contract to develop and run Peru's northern port of Paita are scheduled to be released this year.
Government officials expect the port of Paita, the second biggest in Peru, “to become Brazil's exit to Asia,” said Zavala.
Port expansion at Paita will complement the 955 kilometre highway project, which will run across six northern departments.
Paita's container terminal currently handles about 100,000 TEUs per year and authorities are expecting the incoming operator to greatly increase capacity and throughput.
The port's concession has undergone several delays with the Autoridad Portuaria Nacional (APN) and state agency for private investment promotion ProInversion taking longer than expected to update Peru's national port development plan.
García has criticized ProInversion for the delays, calling on officials to boost privatization efforts and launch more new state infrastructure concessional processes.
The Peruvian government has also decided to bring forward an auction for the concession to operate Peru's southern port of Pisco.
Pisco is a general cargo port, handling liquid natural gas (LNG), metals and agricultural produce.
The port was badly damaged last August by the country's worst earthquake in more than 30 years.
Proinversion director David Lemor said: “We're going to place priority on projects in the Pisco area, such as the port and a highway to the highlands. It's important that the port is competitive so that exporters have lower costs.”