Peru pushing for coastal shipping law

Peru's government, which last month awarded a key northern port concession to the private sector, is pushing for legislation that will spur shipping between the country's ports.

A law could potentially clear the way for 20Mt/y of cargo to be moved by sea instead of being trucked along the Pan American highway, according to the transport and communications ministry

The legislation would cut transport costs and pollution by using ships carrying 500-1,000 containers, the ministry's aquatic transport director Juan Carlos Paz said in a statement. Ships could also ferry passengers between ports, he said.

The right to operate shipping routes between ports would provide alternative transport during natural disasters such as last year's record flooding that swept away roads and bridges on the north coast, according to the ministry.

Widespread floods and landslides caused by El Niño in 1Q17 left at least 163 dead and 291,000 homeless and caused billions in damage to roads, railways, power plants, schools and hospitals.

The proposed legislation is part of a government program to modernize the country's ageing port infrastructure and make the country's exports more competitive.

Peru awarded a US$229mn contract to upgrade the northern coastal port of Salaverry to Grupo Romero in May and the US$95mn Amazon waterway concession to China's Sinohydro last July.

In the past four years, the Romero Group completed an expansion of its Matarani port, while Moeller-Maersk, DP World and a group led by Trafigura Beheer completed projects at the port of Callao and private operators also assumed control of the ports of Paita and Pisco.