Monday, July 15, 2024

DP World Celebrates $400M Expansion at Callao Port: Boosting Global Trade Efficiency and Economic Growth in Latin America

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DP World Completes $400 Million Expansion Project at Callao Port

DP World has marked a significant milestone in the Port of Callao, Peru, with the completion of its $400 million expansion project at the South Terminal. This development is set to boost the container handling capacity by an impressive 80 percent, reinforcing DP World’s ongoing commitment to enhancing global trade efficiency and supporting economic growth in Latin America.

The Bicentennial Pier expansion is a monumental achievement, extending the pier from 650 meters to 1,050 meters. This extension positions Callao as one of the select ports in South America capable of hosting three vessels concurrently, or alternatively, two mega-vessels. The upgrade boosts the port’s annual handling capacity from 1.5 million TEUs (twenty-foot equivalent units) to 2.7 million TEUs. Additionally, the container yard space has expanded, now covering a total of 40 hectares.

This project plays a crucial role in DP World’s strategy for Latin America. Located near Lima, the capital of Peru, and in close proximity to the expanding Jorge Chávez Airport, the enhanced Port of Callao aspires to be not just an efficient port but a premier logistics hub for the region.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, expressed his pride in the project, stating, “The Bicentennial Pier project is a landmark achievement for us in Peru. Our $400 million investment underlines our unwavering commitment to promoting economic growth in the region and establishing Callao as a leading logistics hub. This development also signals our commitment to setting new benchmarks for sustainable port operations in South America.”

Carlos Merino, CEO of DP World in Peru and Ecuador, highlighted the transformative impact of the Bicentennial Pier expansion on the Peruvian economy. “As the lifeline of Peru, handling over 90 percent of the country’s containerized cargo, the Port of Callao is critical for the nation’s economy. This expansion significantly boosts our capacity and operational efficiency, further ensuring our dedication to enhancing Peru’s connectivity and economic vitality.”

The project’s highlights include the addition of state-of-the-art electric-powered equipment, featuring 15 electric cranes and 20 electric ITVs (internal transport vehicles), making it a pioneering initiative worldwide in terms of electric fleet magnitude at a port terminal.

Moreover, the terminal is now home to the first electric charging station for trucks in Latin America. With a 2-megawatt capacity, the station will not only support DP World’s electric ITVs but also contribute to a reduction of over 2,000 tonnes of CO2 emissions annually, promoting a sustainable energy transition in Peru.

In addition to the developments in Peru, DP World has commenced the construction of a new SAR900 million ($250 million) logistics park at Jeddah Islamic Port in collaboration with the Saudi Ports Authority (Mawani). This facility, set to be the largest integrated logistics park in the Kingdom of Saudi Arabia, aims to bolster trade in the region while supporting the Saudi Vision 2030 ambitions.

The Jeddah Logistics Park, spanning 415,000sqm with 185,000sqm of warehousing space, is strategically positioned on the crucial Asia-Europe shipping route. It is envisioned to enhance multimodal connectivity and offer exceptional market access for customers.

Conclusively, these projects by DP World in both Peru and Saudi Arabia underline the company’s commitment to bolstering global trade infrastructure, promoting sustainable practices, and supporting economic growth in key markets around the world.

Alexandra Bennett
Alexandra Bennetthttps://www.businessorbital.com/
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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