APM Terminals' July 1 launch of 30-year concession at Port of Callao, Peru, brings reduction in tariff charges of 15%-18%; APM investments expected to grow capacity to 2.9 million TEUs annually, 9.9 million tons of general cargo over next decade
July 6, 2011
– - 30 year concession starts at Peru’s largest port
Official responsibility for the administration and management of Terminal Muelle Norte, (the North Terminal) at the Port of Callao, Peru, was assumed by APM Terminals in a ceremony held on July 1st in Callao. With the final documents signed, the APM Terminals banner was raised, and stevedores set to work on the eight vessels alongside at the facility. Tariff charges will be reduced by 15%-18% per the terms of the concession, bringing immediate cost savings to the terminal’s customers.
“This is a great day for us, and for the Port of Callao and Peru” said APM Terminals Callao Managing Director Henrik Kristensen, adding “our investment in expansion and personnel will make this terminal one of the busiest and most important ports in Latin America”.
The concession contract finalized on May 12th called for APM Terminals to assume operational control of the terminal within 60 days of signing the concession agreement. On May 1st the Government of Peru had named APM Terminals Callao the winner of the bidding process. The terms of the concession include the investment of $749 million USD to update and expand the existing facility into a modern multi-purpose terminal serving general, Ro-Ro, break bulk and containerized cargos as well as cruise ships.
Planned improvements by APM Terminals include the purchase and installation of 12 new post-Panamax STS cranes and 36 new RTGs at the terminal. Other investment, such as a new grain silo, will increase in annual capacity to 2.9 million TEUs and 9.9 million tons of general cargo over the next decade. When built out to full capacity, Terminal Muelle Norte will employ approximately 1,500 personnel. The Peruvian economy grew by 8.7% in 2010, for a GDP of $277 billion USD, the 5th-largest economy in South America. Peru’s largest trading partners are the USA and China.
APM Terminals also operates local cargo inland services company Almacenes de Contenedores Sudamerica (ALCONSA) in Peru, with locations in Callao and Paita. APM Terminals Callao is a joint venture between APM Terminals, Callao Port Holding, of the Netherlands, and Central Portuaria, of Peru.
About APM Terminals
providing the port and inland infrastructure to drive global commerce
APM Terminals is taking a leading role in addressing the critical issues facing the transportation industry. With our customers and business partners, the company has designed the world’s most comprehensive port and inland network to meet the shipping community’s needs today, tomorrow and in the future. With more than 60 ports and 132 inland facilities in 63 countries – the goal is to offer the market more solutions than ever before to help companies and countries achieve their ambitions. Media can download high resolution photos and more information at www.apmterminals.com