Peru focusing on rail and port developments to support mining boom

Peru is looking to improve its rail network to facilitate the transport of minerals from mines to ports and to carry out expansions of shipping terminals to achieve economies of scale.

In the medium term, the goal is to advance the construction of two major rail projects: one leading from major copper deposits in Cajamarca region to Eten port in Lambayeque, and the San Juan de Marcona-Andahuaylas railroad, running from the mountains of Apurímac region to the coast of Nazca.

The expansion of Eten port in the north is also a priority, along with Grau port in southern Tacna region.

“We must not only ensure the clean handling of minerals but also improve connectivity between mines and ports. The transport and communications ministry [MTC] has plans to develop both railroads, which will connect two mining areas with two port areas,” Juan Carlos Paz, president of national port authority APN, said in a debate hosted by the local institute of mining engineers (IIMP).

Paz said the port infrastructure is already prepared to receive the new investments and it is now up to the ministry to promote the projects. 

Port developments

The APN is aware of upcoming mine expansions and greenfield projects, such as Bear Creek's Corani silver-lead-zinc development and Southern Copper's Tía María mine, which will require improvements to existing ports to handle the extra cargo.

“Matarani is currently considering expanding its facilities to accommodate Zafranal [a copper-gold project in Arequipa region]. Southern Peru is rich in minerals, offering opportunities such as the modernization of Ilo port. 

"We're working with [investment promotion agency] ProInversión on a demand study for the southern zone, which includes Bolivia and Brazil. There are two ports [Corio in Arequipa and Grau in Tacna] that might be excluded from this evaluation. The master plan for Grau is nearing approval, with estimated capex of US$400mn,” Paz said, adding that Eten port will also require around US$400mn for its expansion. 

Regarding Eten, potential bidders are expected to emerge in the coming months. With the development of copper projects like Michiquillay and La Granja, ports such as Salaverry in La Libertad region are also expected to experience increased flows of minerals.