Global ports operator DP World has completed a $400 million expansion project at the Port of Callao in Peru as part of the company's efforts to increase capacity across Latin America.
The move has boosted container handling capacity at the port's south terminal by 80 per cent, “solidifying Callao’s position as the key gateway for global trade on the west coast of South America”, DP World said on Friday.
The project has increased handling capacity to 2.7 million twenty-foot equivalent units (TEUs), from 1.5 million TEUs, while the container yard space has been expanded to a total of 40 hectares, the company said.
The port’s pier has also been extended to 1,050 metres, from 650 metres, allowing Callao to accommodate “three ships or two mega-ships at once”, making it one of the few ports in South America with the capability, DP World said.
“This expansion significantly enhances our capacity and operational efficiency,” said Carlos Merino, chief executive of DP World in Peru and Ecuador.
“This development, in conjunction with other DP World ports in the region, solidifies our commitment to enhancing the connectivity and economic vitality of Peru and the entire region.”
DP World is heavily investing in its port terminals in Peru and Ecuador to boost capacity and operational efficiency.
In Ecuador, the company plans to extend its berth at the Port of Posorja to 700 metres, with an investment of $140 million. DP World also manages a special economic zone adjacent to the port.
In April, DP World teamed up with Brazilian railway operator Rumo to build a terminal at Brazil’s Santos port – one of the largest ports in Latin America – to manage 12.5 million tonnes of cargo annually.
The construction cost for the new complex at Santos is estimated to be 2.5 billion Brazilian real ($500 million), according to Rumo’s estimates.
Latin America's international trade has increased gradually over the last two decades. However, it still lags behind most other emerging markets.
International trade accounts for only 47 per cent of the region’s GDP, which is about 20 percentage points lower than that of other emerging markets worldwide, the International Monetary Fund said in a report last year.
“Latin America would likely enjoy large economic gains by improving important commercial infrastructure, such as transportation and customs,” the fund said.
“Streamlining customs procedures, fostering public-private partnerships in the logistics industry, and lowering bureaucratic obstacles are examples of policies that can help.”
