COSCO Finalizes Deal for $3 Billion Peru Port

 15 May 2019 11.09am

Leading port operator COSCO Shipping Ports has announced that the equity transaction of the project company responsible for its greenfield subsidiary at the Port of Chancay, Peru, is complete.

In January 2019, COSCO signed a subscription and investment agreement with Volcan to acquire a 60% stake in the facility, which is located 58 kilometres north of the Peru’s capital and economic centre Lima.

A ceremony to recognise the transfer was attended by President of Peru Martín Vizcarra and a number of high-ranking officials from the government, as well as Chairman of COSCO Shipping Corporation, Captain Xu Lirong.

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The event culminated in the signing of closing certificates by Zhang Wei, Chairman and Managing Director of COSCO SHIPPING Ports and Mr. José Picasso, Chairman of Volcan Compañía Minera S.A.A, finalizing the deal.

The Chancay site is a natural deep-water harbour with 16 metres of water-depth, allowing it to accommodate ultra-large container vessels (ULCVs).

Once constructed, the port will include a number of multi-purpose terminals, including container handling facilities and other related infrastructure.

 

Translation: This important work will require a total investment of US$3 billion and comprises the design, financing, construction, conservation and operation of the new port.

 

According to a statement, phase one of the project will include the building of fourth berths, two of which are container berths with an annual throughput capacity of 1 million TEU.

President Vizcarra said: “The signing of the closing certificate by companies from Peru and China is a milestone.

“The companies from China and Peru jointly invested and developed the Chancay Project, which laid a solid foundation for Peruvian economic development, as well as trade cooperation between China and Peru.

“The construction of the Port of Chancay will contribute to regional development and we expect to develop Port of Chancay into one of the most important hub ports in South America and logistics centres near the Pacific Coast, which will promote regional trade and the trade between China and Latin America.”

 

 

Captain Lirong also commented: “COSCO SHIPPING chose to invest in the Port of Chancay because there is great potential in Peru's economic development and trade between China and Peru.

“The completion of the transaction signals that Chinese and Peruvian companies will jointly cooperate and maximize resources and advantages in their professional fields and heralds a new chapter in cooperation.”

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