Lima — The National Port Authority (APN) of Peru will seek to make progress on its Callao Pre-Port project in 2025, according to Juan Carlos Paz, head of the government body. The main objective behind this investment of up to US$100 million will be to reduce congestion at the country’s most largest port, currently generated by public and private transport vehicles, as well as more than 3,000 cargo trucks. The official also confirmed the Peruvian government is aiming for the recently inaugurated Chancay port to become “a direct and continuous route to China”.
The Callao pre-port area “would function as a buffer, because trucks will arrive there directly and will be able to enter the two Callao terminals with a shift system, minimizing the possibility of congestion on the roads,” says Paz. The infrastructure is being planned with a capacity to accommodate 729 trucks within a 12-kilometer area, and would be located between Néstor Gambetta and Contralmirante Mora avenues.
“Today we are a hub, because Callao is handling 20% transhipment cargo, which is cargo mainly coming from Chile, Colombia and Ecuador, but with Chancay, the transhipment level will be at least 30%.”
Juan Carlos Paz, President of the Peruvian National Port Authority
The authorities also aim to reduce the delay each truck faces when entering the port, a process that can currently take up to 12 hours. According to the Ministry of Foreign Trade and Tourism, these trucks face daily crimes linked to drug trafficking and container theft, generating additional costs of up to US$500 per container. The amount rises to US$1,000 when involving smaller exporters or importers.
This ambitious plan cannot yet be executed, however, as it still hinges on the promulgation of Regulation No. 32048, which would allow concession holders to invest beyond their assigned areas. The approval would enable improvements to port connectivity and competitiveness, Paz says.
With that green light, DP World and APM Terminals could begin construction for the Callao Pre-Port project. Currently, the ball is in the Government’s court, specifically within the purview of the Ministry of Transport and Communications, which must write up the regulation proposed by the APN.
“Chancay port will allow the entry of the world’s largest ships and will be able to establish a direct and continuous route to China, specifically to the port of Shanghai.”
Juan Carlos Paz, President of the Peruvian National Port Authority
TRUMP ALLY CALLS FOR TARIFFS
Mauricio Claver-Carone, former advisor to the Trump administration, has suggested extending the 60% tariffs promised by the president-elect to Chinese products to merchandise from South American countries that use the new Chancay deep-water port in Peru, built with Chinese capital.
“We should consider these proposals within a broader context and at the appropriate time,” Paz responded to Bloomberg Línea’s inquiry.
“The concrete fact is that the United States has always been an extremely important strategic commercial partner for Peru, in addition to the fact that the Chancay Port Terminal will not only benefit our country but the entire region that looks with great expectation at the advantages of a dynamic international trade,” he added.
CALLAO PRE-PORT: A TOP PRIORITY
The APN holds the execution of the Callao Pre-Port project as its top priority in 2025. According to Paz, its completion will be key to improving the operational efficiency of the country’s main port and reducing congestion that affects the city of Callao, as well as Lima.
“Currently, our priorities include the Matarani addendum and the Callao Pre-Port,” Paz notes.
Paz says that the Pre-Port will enhance port efficiency by reducing congestion in port-city interactions. Presently, the absence of this infrastructure results in hundreds of trucks utilizing Callao’s primary thoroughfares, such as Manco Cápac and Atalaya avenues, to a considerable extent, thereby negatively impacting traffic patterns.
The proposed solution entails the implementation of a shift system in the pre-port, which will enable trucks to enter the port terminals in an orderly manner, thereby minimizing the impact on the road network. The APN head stated that the Callao port handles a volume of 2.7 million TEUs (Twenty-Foot Equivalent Units) annually, which illustrates the extent of the issue. “The congestion it generates in the city of Callao is significant, and this pre-port will enhance port efficiency and reduce congestion,” he asserts.
Regarding the necessary investment, estimates range from US$40 million to US$100 million. However, Paz believes the most important benefit of the new infrastructure will be the positive impact it will have on traffic congestion. He says that the pre-port will have an exclusive lane for trucks between the pre-port and Callao, which will eliminate the congestion caused by trucks and private vehicles interacting on the roads. This will create a more fluid experience for all road users.
While there is not yet a defined timeline for the project’s completion, Paz emphasizes that its progress depends on a joint decision between the APN, the Ministry of Transport and Communications, and ProInvestment. “Our goal is to have the project on track next year so that we can announce the creation of a pre-port,” he states, noting that it is currently in the planning phase.
The next critical step will be the publication of the regulation, which will allow the involved companies to submit proposals and advance the project’s materialization. “With the regulation in place, we can confirm the possibility of a pre-port in Callao,” Paz concludes.
MATARANI AND THE WORLD’S RISING COPPER DEMAND
Additionally, the port authority is evaluating a significant extension of the Matarani Port concession, as Paz explains. “The master plan is a management instrument for port planning,” he states, referencing the primary port terminal in southern Peru, currently operated by Tisur, a company with Peruvian and North American capital.
The current concession, which commenced in 1999, will expire in 2029. However, there is a possibility of a 30-year extension until 2059. In order to proceed with this expansion, a proposal must be submitted that aligns with the recently approved master plan. “Our goal is to reinforce aspects of mineral cargo, general cargo, and containers with a long-term vision,” Paz states, who is overseeing the evaluation process of Tisur’s proposals.
The ambitious plan calls for a total investment of US$420.62 million, driven primarily by the development of significant mining projects in the southern region. The main projects that will generate greater demand are Antapaccay, Constancia, Inmaculada, Cerro Verde Expansion, Las Bambas, Tambomayo, Marcona Expansion, Toquepala Expansion, Quellaveco, and San Gabriel, along with the Majes Siguas II irrigation project and the future exploitation of Zafranal.
The port currently handles over 6.5 million tons of mineral exports annually, primarily copper. Paz anticipates a sustained increase in demand, especially considering the global energy transition and the growing need for this mineral, noting that the majority of exports from the southern region are copper.
IMPACT OF CHANCAY PORT IN PERU
The inauguration of the Chancay Port represents a significant milestone in Peru’s port history, with commercial operations scheduled to commence in February 2025. “It will allow the entry of the world’s largest ships and establish a direct and continuous route to China, specifically to the port of Shanghai,” Paz highlights, emphasizing the strategic importance of this infrastructure.
This development will reinforce Peru’s status as a regional hub, according to the official. “Today, Callao is a hub, handling 20% of the transhipment cargo, mainly from Chile, Colombia, and Ecuador. With the addition of Chancay, we anticipate that the transhipment level will reach at least 30%.” The project is led by Cosco Shipping Ports Limited (60%) and Inversiones Portuarias Chancay (40%).
Projections indicate strong potential for success, with an estimated one million TEUs in the first year of operation. When combined with the three million TEUs handled by Callao, the Chancay-Callao axis will reach nearly four million TEUs annually. Paz affirms that it will become a pivotal point along the entire Latin American coast, with significant employment opportunities in direct port activities and related services such as logistics operations, engineering, hospitality, and supply.
PROGRESS ON OTHER PERUVIAN PORTS
The future of the Corío Port in Arequipa is currently under review by the National Port Authority, which is conducting a rigorous feasibility analysis. “We have engaged ProInvestment to conduct a demand study for the entire southern Peruvian region. This will enable us to gain a deeper understanding of the potential for Corío,” said the APN head, noting that “a port cannot succeed without demand.”
While two temporary technical feasibility requests have been declined, the committee is open to considering new proposals. “Should a third temporary technical feasibility request be submitted for analysis and meet the necessary suitability requirements, it will be approved.” Indeed, a third proposal is currently under review.
Port development in the southern part of the country is progressing at a fast pace. In Ilo, Southern proposes the construction of a breakwater to improve port operability, which currently operates for approximately 10 months a year. Furthermore, the master plan for the Miguel Grau port in Tacna has been approved. This regional government initiative now requires coordination with ProInvestment to evaluate its feasibility.
This comprehensive strategy includes the recent approval of the Matarani master plan, the evaluation of its extension for an additional 30 years, and an agreement with the Moquegua regional government for the Ilo master plan.
