The Transformative Impact of Chancay Port Project: A Keynote Overview

Overview of Key Points on the Keynote Talk on the Multipurpose Port of Chancay

• Introduction of the speaker, Admiral Carlos Tejada Mera, as the deputy general manager of port terminals, Chancay SA, Peru

• Description of the Chancay port project, including its complex nature and the global collaboration with Costco Shipping Group

• Explanation of the three main components of the Chancay port project: entrance complex, underground tunnel, and port operational area

• Details about the private investment in the project, with 60% from Costco Shipping Peru and 40% from Volcano Mining Company

• Insights into the project's investment amount, operational conditions, and commitment to long-term global vision

Overview of Key Points on the Keynote Talk on the Multipurpose Port of Chancay

Transformational Impact of Chancay Port Project

• Chancay Port is a Greenfield port, built from scratch, and fully automated, with no presence of people in the container yard area.

• The port requires 35 megawatts of power in the first stage and is building a seven-kilometer electrical transmission line to meet the demand, with plans to bring 150 megabytes to the area.

• The port operation is designed to solely use port areas, minimizing public area usage, and ensuring the operation is conducted in a controlled environment.

• The project aims to integrate modern city elements alongside the port, with a focus on urban development, sanitation, health, housing, and security.

• The port is committed to education, financing the expansion of the Technological Institute of Chancay, and enabling technical careers to retain local talent.

• To compensate for the project's impact, the port is investing in local infrastructure, sports facilities, scholarship programs, and educational opportunities for the youth of Chancay.

• Peru's free trade agreements with countries comprising 42% of the world's population emphasize the need for good infrastructure connectivity to the Asia Pacific region.

• The lack of direct cargo routes to Asia for South American countries highlights the significance of first-class infrastructure like Chancay Port to boost trade and reduce logistical costs.

• Improving connectivity through Chancay Port will allow Peru to compete more effectively in agro-exports and streamline transportation to Asia, enhancing the country's economic competitiveness.

• The potential to establish Chancay Port as a key point on the global maritime route can transform Peru's position in global maritime transport and enable significant growth potential.

Transformational Impact of Chancay Port Project

The Vision of the Port of Chancay Project

• The vision for the Port of Chancay project is to double the agricultural area, establishing an infrastructure for agro-industrial market expansion towards the Asia Pacific.

• The port aims to reduce logistics costs by providing direct routes to Asia, creating positive impacts on the export market.

• The project also aims to establish integrated logistics services in the multimodal zone, increasing Peru's competitiveness and enabling growth opportunities for new careers and knowledge.

• The long-term vision includes transforming the port area into a global industrial and technological logistics hub, attracting world-class companies for industrial and technical installations, ultimately boosting exports and economic growth.

• Additionally, the project envisions developing the Chancay area into a vibrant growth pole with the establishment of shopping centers, real estate developments, and a potential tourism circuit, leveraging the rich cultural heritage and friendly community of Chancay.

• The investment also includes plans for a 22-hectare train station delivering modern connectivity, contributing to the overall development of the region and benefiting all Peruvians.

The Vision of the Port of Chancay Project

Why Chancay was Chosen for the Construction Project

• Peru's privileged location on the Pacific coast, with a favorable climate and abundant resources, makes it an attractive choice for major construction projects.

• The country's potential as a significant global food source, especially for European, American, and Asian countries, plays a crucial role in attracting investment and infrastructure development.

• Peru's open economy, coupled with free trade agreements covering almost 86% of the global GDP, provides a strong incentive for international businesses to invest in infrastructure and logistics within the country.

• Proximity to Brazil, the eighth largest economy in the world, presents opportunities for trade and connectivity, including the possibility of establishing a railway for cargo transportation.

• Chile's concerns about logistical challenges highlight the competitive advantages of Peru's strategic location for global maritime connectivity.

• The vision of integrating the ports of Callao, Ancón, and Chancay can be transformational for Peru's industrial and logistics vision, potentially leading to technological transformation and strategic partnerships.

Why Chancay was Chosen for the Construction Project

The Port of Chancay: A Key Discussion

• Economies of scale in cargo shipping: The current cargo from Colombia, Ecuador, Chile, and Peru transships in ships that load more than 18,000 containers, resulting in cheaper container costs due to economies of scale.

• The emergence of megamax ships: The introduction of twenty-four megamax ships in August last year, with an additional fifty ships of this type in production, was a response to the traffic congestion caused by the pandemic.

• Impact of maritime transport on global inflation: The increase in shipping costs has led to a surge in global inflation, reflecting the significant impact of maritime transport on the economy.

• Optimal start-up and operation of the Port of Chancay: The port is undergoing a meticulous planning and execution phase to ensure optimal start-up and operation. This involves coordination with various entities, including the national port authority and Sunat, and the implementation of stringent security measures.

• Contingency plans for seismic events: The port has been designed to withstand earthquakes of up to 8.5 degrees, with additional measures to mitigate potential damage from tidal waves, demonstrating a comprehensive approach to safety.

• Integration with logistics: The port is linked to a parallel logistics project, the Chancay Logistic Park, encompassing 870 hectares and designed to integrate with the shipping and logistics business of Costco Shipping, offering a holistic approach to supply chain management.

The Port of Chancay: A Key Discussion

Conclusion:

The Chancay Port project is poised to transform Peru's position in global maritime transport with its focus on connectivity, infrastructure, and strategic partnerships. The project's vision, impact, and long-term potential present significant opportunities for economic growth and industrial development in the region.

Q & A