Peru: APM Terminals Callao Aids Local Industry

APM Terminals will provide approximately $3 million USD for the development of a new modern commercial fishing terminal at the Port of Callao to accommodate the local fishing industry which had been concerned about potential displacement with the ongoing construction of a new expanded cargo facility at the port.

The agreement, signed on August 20th, clears a potential obstacle for the scheduled development and expansion of the port’s North Terminal, now operated as APM Terminals Callao.

“Our business model is based on the ‘triple bottom line’ approach, including performance measures for safety, environmental sustainability and positive socio-economic impact, aligned with the UN Global Compact principles – this requires a commitment to being a good corporate citizen and a good neighbor as well in any local communities in which we conduct our business”, stated APM Terminals Callao Managing Director Henrik Kristensen, adding “This is a historic agreement that enables the expansion of the multi-purpose North Terminal of Callao and provides a new and modernized fishing terminal in support of Callao’s fishing industry, and the creation of new jobs in the port community”.

The Callao fishing fleet is comprised of approximately 400 fishing ships, which will now receive improved anchorage and support facilities distanced from the large commercial vessels calling the adjacent new container quay called for in the first phase of the North Terminal expansion project. The APM Terminals support will provide for the modernization of the fishing dock, including the installation of new lifting equipment, weighing scale, freshwater tank, sewage pump, and the construction of modern sanitary amenities, a new canteen and the renovation of the administrative building. New anchoring buoys and pontoons will enable part of the fishing fleet to be located outside the breakwaters, reducing the number of vessels inside the port area, improving the overall safety of the port. The total cost of the new construction and equipment and renovation project is estimated to be $3 million USD, and will begin immediately.

The fishing industry agreement, which was not part of the 30-year concession signed by APM Terminals in May of last year, also calls for the Peruvian Navy to provide an anchorage area within their jurisdiction for some fishing vessels and agreed to increase security patrols inside the port limits. For their part, the fishing community acknowledges the concession area perimeter of the APM Terminals Callao project, and supports the development of the Port of Callao into an international regional cargo hub.

APM Terminals assumed operational control of the North Terminal in July 2011 and handled 253,000 TEUs in the last six months of the year. The company has invested USD 32 million in the first 12 months.

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 cargoes 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, the world-class facility will employ approximately 1,500 personnel.

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.

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Source: APM Terminals, August 27, 2012; Image: APM Terminals