Dubai Ports World Callao set to tap Muelle Sur terminal developer

Dubai Ports (DP) World Callao is set to choose next week the firm that will be in charge of building the new Muelle Sur terminal at Callao port, Peru's largest, government news service Andina reported.

Four companies presented economic proposals to DP World Callao, company CEO Maciek Kwiatkowski said without naming the companies or the countries from which they come.

DP World Callao - comprised of Dubai Ports and Spanish firm Uniport - was awarded the terminal's 30-year concession after submitting a proposal that involves total investment of US$617mn, including US$144mn for the common port area.

The consortium expects to launch operations at the terminal in 2010 but is still awaiting national port authority (APN) approval for the technical aspects of the project, including the new terminal design, which was done by engineering firm Royal Hakoning from the Netherlands, Kwiatkowski said.

The company's aim is to convert Callao into a hub port for the western coast of South America, which is already on its way to happening thanks to its geographical location, sustained export growth and the free trade agreements (FTAs) signed, he added.

Indeed, with the FTA recently signed with the US alone, container movement at Callao is expected to grow more than 20% a year, transport and communications (MTC) minister Juan Suito was quoted as saying.

At the same time, some US$204mn would be needed to improve highway access to Callao port, Andina reported.

Callao's regional government is working in conjunction with MTC and APN to define the financial structure needed to upgrade access to the port, Callao government's planning manager Daniel Casella said.

Roadworks are expected to begin in the second half of 2008 and include works on the highways Néstor Gambetta and Costanera - the latter which crosses various coastal districts of capital Lima.

Part of the finance may come from the additional US$144mn that DP World Callao offered for the development of common areas, APN head Frank Boyle said, while MTC's Suito added that part of the investment would probably have to come from government coffers.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: December 17, 2007

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