MercoPress. South Atlantic News Agency

Dubai begins expansion of Peru's main port El Callao

El Callao - Peru

Global port operator Dubai Ports World has started the construction of the 300 million US dollars Muelle Sur Container Terminal at the Port of El Callao, Peru.

Peruvian president Alan Garcia was present at the ground-breaking ceremony that marked the beginning of the expansion project of the country's most important port. President Garcia said that "improvements in the country's infrastructure proved that Peru was well on its way to becoming a first world country". The Peruvian terminal nearest to the capital of Lima is expected to be completed by 2010. Muelle Sur is seen to become one of the largest ports in the Americas. Currently, El Callao is the largest port in Peru, handling 600,000 TEUs annually and holds 70% of the nationwide cargo market share. DP World, together with a local firm Uniport, won a 30-year concession to operate and develop the terminal. A 210 million US dollars initial outlay will be invested for the construction of two berths capable of servicing vessels at 5,500 TEU capacities and a container storage area with a capacity of about 800,000 TEUs. For the long term, the terminal will be primed to handle 1.2 million TEUs. Other investments include other port related infrastructure such as the development of land access, entrance channel, navigation aids, safety and security and logistics facilities.