COSCO SHIPPING Ports Limited will establish its first subsidiary in South America by acquiring 60% stake in Terminales Portuarios Chancay S.A. (Chancay Terminal) of Volcan Compañía Minera S.A.A. For US $ 225 million, with an initial payment of US $ 56 million.
COSCO SHIPPPING Ports will partner with Volcan to build the Chancay Terminal. The construction will include multipurpose container springs and related infrastructure facilities. Phase one of the terminal will have four moorings, two of which are for multipurpose use and two for containers with a total designed annual capacity of one million TEU.
“The investment in the Chancay Terminal allowed us to further expand our reach to South America. The possible terminal at the Port of Chancay will be the Company’s first terminal in South America and should help reduce the deficiency in port infrastructure in Peru. ” sure Zhang Wei, vice president, and general manager of COSCO SHIPPING Ports.
“Chancay Terminal is the first terminal project invested by Chinese companies in South America, which has received great attention and support from both the Chinese and Peruvian governments,” comments Captain Xu Lirong, president of COSCO SHIPPING.
The terminal, located 58 km north of the Peruvian capital of Lima, is a natural deepwater port with a water depth of 16 m, capable of receiving mega vessels.
Chancay Terminal owns the land of the terminal and does not need to pay any concession right.
Possible white elephant?
The Peruvian Chamber of Construction (Capeco) warned that there is a risk that the port of Chancay become a white elephant if a territorial development plan for its area of influence is not drawn up. They argue that as with the interoceanic highway project, the communities do not receive attributes and without this, they can not develop to support the investment in infrastructure.