nDP World, the global logistics giant, has expressed a keen interest in investing $1 billion into Peru’s port infrastructure, according to Peruvian President Dina Boluarte.The announcement came after a meeting between Boluarte and Sultan Ahmed bin Sulayem, Chairman of DP World’s Board of Directors, on the sidelines of the World Economic Forum in Davos, Switzerland.
In a post on “X,” Boluarte highlighted that the investment aims to “promote agricultural exports, provide job opportunities, and enhance Peru’s position as a logistics hub in the region.” This move underscores DP World’s commitment to expanding it’s footprint in Peru,where it has been a key player as 2006.
The emirati company currently manages two major ports in Peru: Callao Terminal – South Pier and Baita Port. Callao Terminal, operated by DP world Callao, is the country’s primary container terminal, handling over 60% of the cargo arriving at the port of Callao. This port alone accounts for nearly 90% of Peru’s total container trade. In 2021, DP World achieved a milestone by processing 1.5 million twenty-foot equivalent units (TEUs), a record for the country.
Last year, DP World invested $400 million in expanding the Callao Terminal, transforming it into one of the few ports in South America capable of accommodating three ships simultaneously. This expansion not only boosts the port’s capacity but also solidifies its role as a critical logistics hub in the region.
The table below summarizes DP World’s key investments and achievements in Peru:
| Key Metrics | Details |
|——————————-|—————————————————————————–|
| Total Investment | $1 billion (proposed) + $400 million (completed) |
| Ports Managed | Callao Terminal – South Pier, Baita Port |
| Cargo Handling | Over 60% of cargo at Port of Callao, 90% of Peru’s container trade |
| Record TEUs (2021) | 1.5 million |
| Expansion (2023) | $400 million, enabling three-ship accommodation |
DP world’s strategic investments in Peru are set to transform the country’s logistics landscape, fostering economic growth and creating new opportunities for trade and employment. As the company continues to expand its operations, Peru is poised to strengthen its position as a leading logistics center in South America.
Headline:
“DP World’s Billion-dollar Bet on Peru’s Port Infrastructure: A Conversation with Logistics Expert, Dr.María Rodríguez”
Interview:
DP World’s Billion-Dollar bet on Peru’s Port Infrastructure
In an exclusive interview with World Today news, Dr. María Rodríguez, a leading logistics and supply chain specialist, discusses DP World’s latest investment in Peru and its potential impact on the country’s economic growth.
World Today News (WTN): Dr. Rodríguez,thanks for joining us today. DP World has announced a proposed $1 billion investment in Peru’s port infrastructure. What does this mean for the country?
Dr. María Rodríguez (MR): Thanks for having me. This proclamation is a notable step for Peru. DP World is already a key player in the region, managing two major ports and handling a large chunk of Peru’s container trade. This additional investment signals DP World’s confidence in Peru’s growth potential and its willingness to support that growth through strategic infrastructure advancement.
WTN: The President highlighted the aims to promote agricultural exports, job opportunities, and enhance Peru’s position as a logistics hub. How feasible are these objectives?
MR: These objectives are all very feasible and interconnected. By expanding infrastructure, DP World can improve port efficiency, reduce congestion, and lower costs for exporters. This can ultimately boost agricultural exports. job creation is also a likely outcome, not just directly in the ports but also in the logistics and services sectors that typically grow alongside ports. As for becoming a logistics hub, Peru is already well-positioned due to its strategic location and strong trade relationships. This investment could accelerate that process.
WTN: Last year, DP World achieved a record of 1.5 million TEUs processed at the Callao Terminal. How has DP World’s management improved this port’s performance?
MR: DP World has brought significant expertise and technological advancements to Callao Terminal. They’ve focused on improving operational efficiency, enhancing safety and security, and investing in infrastructure for the terminal to handle larger vessels. The recent expansion allowing for three-ship accommodation is a perfect example of this. These improvements, combined with Peru’s growing trade volumes, have led to record performances like the one in 2021.
WTN: DP World’s expansion seems to be a win-win for both the company and Peru. What challenges might they face in implementing these plans?
MR: While the potential benefits are clear, there are challenges ahead. These include environmental and social impacts, which need to be carefully managed.Expectations for job creation and economic growth also need to be realistically communicated to avoid disappointments. On the operational side, maintaining service levels during construction and ensuring smooth coordination between DP World and local authorities will be crucial.
WTN: how do you see Peru’s position as a logistics hub evolving in the next decade, given this investment and other factors?
MR: Given this investment and other factors like Peru’s trade agreements and growing GDP, I expect to see significant progress over the next decade. With improved infrastructure and stronger logistics services, Peru could well become a key hub for South American trade,connecting the region to global markets more efficiently than ever before.
Dr. María Rodríguez is a logistics and supply chain expert with over 20 years of experience in the industry. She is a frequent contributor to academic journals and industry publications.
