Peru's port sector in for a busy 2024

Peru's port sector is expected to have another busy year with ongoing and new projects.  

In addition to the completion of the first phase of the Chancay large-scale port north of Lima, the expansion of the north and south terminals at the port of Callao is expected to advance.

Furthermore, two key projects should be awarded – the US$405mn San Juan de Marcona terminal in Ica region proposed by a consortium led by China’s Jinzhao Mining, and the US$172mn Chimbote international terminal in Áncash region proposed by Turkey’s Yilport Holding.

To find out more, BNamericas speaks with Ernesto Guevara, director of both projects at investment promotion agency ProInversión.

BNamericas: The San Juan de Marcona project was declared of interest on December 20. What have been the main steps to promote it?

Guevara: A launch event was organized on December 21, attended by various stakeholders. Likewise, two large international events were held in Rotterdam on January 11 and in Madrid on January 31. Large port operators participated in both.

BNamericas: Where will the capital come from? What meetings are coming up?

Guevara: Companies such as APM, Hutchinson and DP World, among others, participated in the Rotterdam and Madrid events. These are companies with operations in various port terminals in the world – including in South America. In Lima, bilateral meetings have been held with other operators in the local market.

In the coming days we’ll be having individual meetings with companies that have requested access to the data room. We’ll address some aspects that are more detailed, and we’ll try to motivate their participation in the process.

BNamericas: Capex amounts to US$405mn and is divided into stages. What does each one consist of?

Guevara: The project is a greenfield one. The first stage involves US$271mn and includes definitive studies – including the approval of the environmental impact study – for the construction and start-up of a terminal with a capacity to handle up to 12Mt of cargo. This includes containerized cargo, liquid cargo, general cargo and, above all, solid bulk iron ore cargo through the main quay, dock 1.

The second [US$78.4mn] stage involves an increase in cargo and construction of a second dock. With this, dock 1 will specialize only in solid bulk, while the second will serve all types of cargo other than iron ore.

The third and fourth stages [of US$33.8mn and US$20.9mn, respectively] will consist of the expansion of the warehouses for bulk iron ore and containers, respectively.

BNamericas: The project will not only be able to handle Jinzhao’s iron ore, but can serve other mining companies within the area of influence. What opportunities do you identify?

Guevara: There are about 40 mining projects in that area of influence, most of them copper, of which 12 will be activated during and after the port investments. The cumulative investment in these initiatives exceeds US$17bn.

In that sense, we believe the terminal will help accelerate the start-up of several of these mining projects [such as Pampa de Pongo, Marcona, Hierro Apurímac, Los Chancas and Trapiche], many of which are halted.

BNamericas: And opportunities for infrastructure projects?

Guevara: Much of the cargo that is projected to be brought from Apurímac region will require the Andahuaylas-San Juan de Marcona rail line, a project that is in the study stage at the transport and communications ministry, and that will bring cargo from the high Andean zone.

BNamericas: When is the project expected to be awarded?

Guevara: The project is within the period of 90 days from the publication of the declaration of interest. During this period, interested parties may request the meetings they deem necessary and access the project data room, in which case only an information confidentiality agreement is signed. 

Competition has been seen in recent port projects, so we hope that this case will be no different.

BNamericas: What news is there regarding the Chimbote project? Is the aim still to award it in 4Q24 according to the schedule?

The project is in the formulation stage. We are evaluating the initiative with an international consulting firm, which has been reviewing the technical and financial aspects. We hope to complete this stage in May and then begin the structuring stage.

So we expect to declare the project of interest in 3Q24 and, under a direct award scenario, it would be awarded in 4Q24. If there are interested third parties, a tender will be launched and the project awarded in 2Q25.

BNamericas: Are there already interested companies?

Guevara: Yes, there are, but we’re still in the formulation stage. Although we’re not in the promotion and event programming stage, we will seek to contact, in due course, the main global operators through events such as roadshows, one-on-one meetings and visits that will be scheduled.