Peru puts ports centre stage

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Dec 2008

"The ports, including river ports, are going to have a much more important role for the government," he told Gestion, a leading business newspaper in a lengthty end of year interview. That Mr Simon, the government's number two and very much its motor at the moment, has said this is a clear signal of intent.  What it has done is bring ProInversion, the government's investment seeking body, into the equation, in a bid to get things moving.
"Inside a short time we are going to accelerate some things in order to have better infrastructure, including putting our ports onto a higher level," Mr Simon told the Gestion newspaper. "The Ministry of Transport and Communications has done a good job but the ports were (not what we need). Now across at ProInversion, we will have greater dynamicism in the concessioning of ports."
At stake are investments in seven ports. These are listed by ProInversion with the estimated investment as Paita ($128.8m), Salaverry ($40m), Ilo ($100m), San Martin ($80.4), Iquitos ($18m), Pucallpa ($22m) and Yurimaguas ($20m).
Meanwhile, Peru's exporters have already given a lukewarm welcome to a proposal by DP World to develop the Muelle Norte at Callao in Peru. 
"Our recommendation is to present additional projects from big operators to APN/National Port Authority to develope Muelle Norte or Muelle 5 (Northern Pier or Pier 5) taking note that this way is not through PPP," the exporters association ADEX said in response to emailed questions.
Dubai Ports, who already operates the Ports Muelle Sur Terminal, presented to Peru’s Private Investment Promotion Agency and Peru’s National Port Authority, a project to rebuild and restore the Muelle Norte Terminal located at the port of Callao. 
This initiative will require a $1.3bn dollar investment for the construction of four berths able to accommodate post-panamax vessels, two berths for small ships and a storage area of 73 hectares with gantry. This wharf is expected to increase its present capacity to 3m teu from the current 1.2m teu.
Among ADEX's concerns are the over reliance on one operator who is not Peruvian, and the feeling that DP World is acting too fast. Peruvian law gives advantages to those who catalyse a concessioning process where the government has no project planned.

Source: Port Strategy