October 07, 2008

DP World to begin container terminal construction in Peru

Mr Verónica Zavala transport & communications minister of Peru said that construction work on DP World's Muelle Sur container terminal in Peru's busiest port of Callao will begin on March 17th 2008.

It is noted that in June 2006, Peru's Agencia de Promoción de la Inversión Privada and the National Port Authority had awarded DP World Callao a 30 year concession to develop and operate a new container terminal in Callao port's southern zone.

DP World officials said that Callao is the largest and fastest growing container port on the west coast of South America with a compound annual growth rate of over 14% per annum since 2000. The new facility will initially be constructed with 2 berths comprising 660 meter of quay line and 22 hectares of yard, depending on permits and approvals, could be operational as early as the second half of 2009.

Further development will match demand growth with total capacity projected to reach 1.35 million TEUs. Preliminary estimates of capital expenditure are approximately USD 210 million for the first 2 berths. The berths will initially be capable of handling vessels of 5,500 TEU nominal capacities.

DP World Callao is 70% owned by DP World through its subsidiary P&O while the remaining 30% is held by Uniport of Bilbao through its Peruvian subsidiary the Unimar group of companies. It was reportedly awarded the concession after submitting a proposal to invest some USD 617 million including USD 144 million for the common port areas.