COSCO finalises agreement to develop US$3bn Peruvian multi-purpose port

COSCO finalises agreement to develop US$3bn Peruvian multi-purpose port
The ceremony was witnessed by Martín Vizcarra, President of Peru (centre)

COSCO Shipping Ports Ltd (CSP) has signed the subscription and investment agreement with Volcan to acquire stake in the Port of Chancay, where it has planned to develop a US$3bn multipurpose terminal.

Port of Chancay is located 58 km to the north of the Peruvian capital of Lima where, combined with the surrounding areas, 60% of the country’s economic activities are concentrated.

Zhang Wei, chairman and managing director of CSP, said: “With the rapid development of Peru’s economy and trade, insufficient port infrastructure capacity has become increasingly significant.

“Serious congestion and high logistics costs have brought challenges to ship owners and shippers, which constrains the sustained and rapid development of the Peruvian economy. Therefore, we, together with Volcan, have joined forced to invest, build and operate the Chancay project.”

The port is a natural deep-water harbour with a maximum of 16 m water-depth, capable of servicing larger vessels, and phase one of the construction of Chancay will include four berths.

Half of the four berths will be container terminals with an annual capacity of 1m teu while the other half will be multi-purpose terminals.

Captain Xu Lirong, chairman of China CSP, explained that CSP chose to invest in the Port of Chancay because of the “great potential” in Peru’s economic development and trade between the two countries.

In cooperation with Peru, CSP aims to develop the port into an important hub port in Latin America and near the Pacific coast to promote regional economic development.

Lirong added: “It will become the new link and bridge for trade and economic exchanges between China and Peru.”

In order to develop the facility as a hub, CSP will introduce shipping companies and a logistics supply chain, equipped with modern facilities and an intellectual system.

Li Yun, charge d’affairs of the Chinese Embassy in Peru, said: “China and Peru jointly develop the Port of Chancay, which is an important cooperation in the infrastructure field and symbolises the friendship between the two countries.”