DP World Callao to start US$350mn port terminal expansion

DP World Callao, the Peruvian unit of Dubai-based DP World, will start civil works on the US$350mn expansion of the Muelle Sur container terminal in Callao port as planned in August, a company source, requesting anonymity, told BNamericas.

DP World and the transport and communications ministry (MTC) agreed to the expansion from 1.2mn TEUs to up to 2mn TEUs in February 2020 already. Work was planned to take 48 months.

But at the start of the pandemic in March 2020 activities were suspended for about six months with government approval, the source said. “Hence, only eight months have been counted to date. Therefore, there is still a wide margin of time to move forward and complete the commitment.”

The source added construction can only start after the environmental impact study, currently analyzed by the MTC, is approved. However, approval is expected before the end of the current government term.

Construction was awarded to Portugal’s Mota-Engil Perú, which, according to the initial schedule, was due to start works in August. 

However, due to pending formalization of the election results, and a likely victory of leftist candidate Pedro Castillo, companies have stalled investments.

The source said cargo volume increased 15% in the first half, mainly due to agro-industrial exports. Imports remained flat. "The reactivation of the markets of the main economies of the world is generating a greater demand for our products," the source said.

The terminal’s expansion involves the enlargement of the dock from 650m to 1,000m, which includes an increase in storage area. Other aspects are installing three gantry cranes, adding to the seven already in operation.

DP World Callao won the concession in 2006 and began the exploitation phase in 2010. 

The concessionaire handled cargo totaling 15.2Mt in 2020, compared to 15Mt in 2019, according to regulator Ositran.

With 1.36mn containers, DP World Callao moved most units last year. AP Moller-Maersk's APM Terminals Callao was second, moving 853,000 containers in the port's northern terminal.