APM Terminals is set to invest USD 550 mn to expand Peru’s Callao port

APM Terminals is set to invest USD 550 mn to expand Peru’s Callao port, beginning next January, Reuters reported last week. This two-year project is designed to boost the terminal’s capacity to 24k containers, positioning the ports as a major logistics hub. APM Terminals operates one of the port’s two terminals — the multipurpose terminal in the northern leg of the port.

China-Peru trade on the rise: Peru’s Callao port, alongside Chancay port, is at the center of a new push to expand Peru-China shipping links amid a surge in bilateral trade between the two countries. The surge has raised the demand for China-Peru shipping, making direct services with shorter turnaround times more feasible economically, Bloomberg reported last week.

More direct links: This surge in trade, in turn, has sparked the launch of new direct Peru-China links, including the Ningbo-Callao service from shipping giant the Mediterranean Shipping Company (MSC). China’s Cosco — which had just wrapped a USD 1.3 bn development in Chancay Port — also launched a direct Chancay-Shanghai service last year.

REMEMBER- DP World has a foot in Callao: The Dubai-based logistics giant invested overUSD 3 bn in the port since 2010 after it took over the operations of the port’s main containers terminal in its southern leg. This significant investment has supported a nearly 3 mn TEUs increase in the port’s annual capacity.