DP World completes $400 million expansion project at Callao Port
- 22 Jun 2024
DP World has completed a major $400 million expansion project at the Port of Callao in Peru, boosting container handling capacity at the South Terminal by 80 per cent and solidifying Callao’s position as the key gateway for global trade on the west coast of South America.
The Bicentennial Pier expansion project extends the pier from 650 meters to 1,050 meters, making Callao one of the few ports in South America capable of accommodating three vessels (or two mega-vessels) simultaneously.
The project increases handling capacity from 1.5 million TEUs (twenty-foot equivalent units) per year to 2.7 million TEUs, while the container yard space has also been expanded to a total of 40 hectares.
The project is a key part of DP World’s ambitions for Latin America, announced last month. Given its proximity to the capital, Lima and complementing the growth of nearby Jorge Chávez Airport, the development elevates the Port of Callao from an efficient port to a premier logistics hub for the entire region.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said, “The Bicentennial Pier project is a landmark achievement for us in Peru. Our $400 million investment represents our unwavering commitment to supporting region’s economic growth and solidifying Callao’s position as a premier logistics hub, setting a new standard for sustainable port operations in South America. We are proud to contribute to a greener future for Peru and global trade.”
Carlos Merino, CEO of DP World in Peru and Ecuador, said, “The completion of the Bicentennial Pier expansion marks a transformative moment for the Peruvian economy. The Port of Callao is the economic heart of Peru, handling over 90 per cent of the country’s containerised cargo, with 60 per cent of that cargo moving through the South Terminal. This expansion significantly enhances our capacity and operational efficiency. In conjunction with other DP World ports in the region, it solidifies our commitment to enhancing the connectivity and economic vitality of Peru and the entire region.”
Along with the pier extension and container handling, the project also adds state-of-the-art electric-powered equipment, including 15 electric cranes and 20 electric ITVs (internal transport vehicles). This makes it the first port terminal in the world to acquire a fleet of this magnitude.
Merino added, “This expansion is not just about increasing capacity; it’s about setting a new standard for port infrastructure in South America. By integrating state-of-the-art electric-powered equipment and implementing sustainable practices, we are leading the way towards a greener and more efficient future for global trade.”
Additionally, the terminal now hosts the first electric charging station for trucks in Latin America. The 2-megawatt station will support DP World’s fleet of electric ITVs, reducing CO2 emissions by more than 2,000 tonnes per year and promoting a sustainable energy transition in the Peruvian market.
Meanwhile DP World and Saudi Ports Authority (Mawani) have commenced construction of a new SAR900 million ($250 million) logistics park at Jeddah Islamic Port last month, which set to provide state-of-the-art storage and distribution facilities, as well as boost trade in the Kingdom of Saudi Arabia and the wider region.
The 415,000sqm greenfield facility will feature 185,000sqm of warehousing space and a sprawling multipurpose storage yard, making it the largest integrated logistics park in the Kingdom. It will have the capacity for more than 390,000 pallet positions, offering customers an efficient platform for the seamless flow of goods to and from Jeddah.
Established in 2022 as part of a 30-year concession, Jeddah Logistics Park will be developed in two phases with a planned opening in Q2 2025. The facility will have a rooftop solar plant on the warehouse that will generate 20MW of renewable energy, contributing to its sustainable design.
The collaboration between Mawani and DP World also includes the management of South Container Terminal through a separate 30-year concession signed in 2020. The terminal is currently in the final phase of a comprehensive modernisation project, scheduled for completion in Q4 2024, which will see the handling capacity being ramped up to five million twenty-foot equivalent units (TEUs).Altogether, the two DP World projects represent a combined investment of close to 4 billion SAR ($1 billion).
Speaking at the event, Sultan Ahmed Bin Sulayem, Chairman and CEO of DP World, said, “Saudi Arabia has always been a deeply important market for DP World and this milestone represents our ongoing commitment to the Kingdom. Jeddah Logistics Park, strategically located on the vital Asia-Europe shipping route, will provide world-class multimodal connectivity and market access for our customers while supporting the ambitious aims of Saudi Vision 2030.
