Chinese state-owned company COSCO Shipping has signed a co-investment agreement with Peruvian mining company Volcan at the World Economic Forum in Davos, Switzerland, to develop a USD 3bn port.
According to a 23 January stock exchange filing from Volcan, Cosco Shipping Ports Limited has agreed to pay USD 225m through a capital increase for a 60% equity stake in Volcan Compañía Minera’s Chancay port project, located 50km north of Lima and the country’s largest port – Callao.
Volcan is a Lima Stock Exchange-listed Peruvian producer of zinc, lead and silver. The company owns 12 mines in the country and 13 hydroelectric facilities supporting its mining operations with a total capacity of 63MW.
Volcan acquired 100% of Terminales Portuarios Chancay in April 2016, the company that was carrying out early stage studies on the potential development of a multipurpose port.
The project consists of a multipurpose port with two specialized terminals for containers, that will include 11 docks, and a bulk, general cargo and rolling cargo terminal with four docks.
The project will be developed in stages, with the first 141-hectare development requiring USD 1.3bn in investments. This will include an entry complex, an underground viaduct tunnel, two container terminal docks and two bulk, general cargo and rolling cargo terminal docks.
Peruvian president Martín Vizcarra said that the construction of the port would take three years, according to a 23 January public statement.
Vizcarra said he hoped the port would become the trans-shipment port of the west coast of Latin America and the ‘nerve center’ for the commercial relationship between China and Peru.