APM Terminals has officially signed a 30-year contract to develop and operate the Terminal Muelle Norte (North Quay) at the Port of Callao in Peru.
The concession was signed in Lima on 12 May by Peruvian President Alan Garcia, representatives of APM Terminals and local partner Central Portuária, according to a press release from APM.
“Our vision is to transform Terminal Muelle Norte into a powerful economic generator for the people of Peru and to develop a world-class full-service port and infrastructure on the West Coast of South America,” said Henrik Lundgaard Pedersen, APM Terminals’ vice-president for business development.
The deal has been welcomed by the Peruvian Exporters Association (Adex), with the organisation’s president Juan Varilias saying the concession will “generate competition to the benefit of the sector with the reduction of tariffs and improvement of services”.
Mr Varilias explained in a press release that the modernisation of the North Quay is necessary given the anticipated 14-20 per cent increase in the number of containers passing through the Port of Callao by 2014.
On 1 April, the government of Peru named APM Terminals as the winner of the bidding process, which also attracted submissions from Hutchison Port Holdings.
The terms of the concession include the investment of US$749m to update and expand the existing facility into a modern multi-purpose terminal serving general, Ro-Ro, break bulk and containerised cargos as well as cruise ships.
“The key management positions have been filled and we are in the process of hiring administrative and operations staff as well as executing contracts with suppliers; orders have already been placed for new forklifts and reach stackers so that we will be ready to take over operations by July,” said APM Terminals’ head of implementation, Søren Sjostrand Jakobsen.
Planned improvements include the construction of a new grain silo and other related cargo handling improvements over the coming years.
Also planned are the construction of new berths and the expansion of the container handling capabilities including new Post Panamax STS cranes and RTGs.
When built to full capacity, APM said the Terminal Muelle Norte will employ approximately 1,500 personnel and will be able to handle 2.9m TEUs and 9.9m tonnes of non-containerised cargo annually.
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