High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Callao terminal productivity surges 63% in seven months as $27 million invested
Callao, Peru– Since assuming control of the North Terminal on July 1, 2011, now operating as APM Terminals Callao, crane productivity has more than doubled to 26.57 moves per hour per crane and gate turnaround time has decreased by 49% to 28
minutes in the first 29 weeks of operations. To date, APM Terminals has invested USD 27 million of a total of USD 749 million earmarked to modernize and expand the existing facility.
“We began dredging the container berths last week to increase the depth from 11 to 12.5 meters, and in April two post-Panamax mobile cranes will be delivered to the terminal, which will raise productivity to an even higher standard and increase our value proposition in the market” said APM Terminals Callao Managing Director, Henrik Kristensen.
Planned improvements at APM Terminals Callao include the installation of 12 new post Panamax STS cranes and 36 new RTGs. Other investments will increase the annual capacity to 2.9 million TEUs – and the installation of a new grain silo will allow 9.9 million tons of general cargo capacity over the next decade. The multi-purpose terminal will handle containerized and general cargoes as well as Ro-Ro, breakbulk and cruise ships.
The Peruvian economy grew by 6.6% in 2011 and has been projected by the International Monetary Fund to expand by 5.9% in 2012. Peru’s GDP of approximately USD 300 billion ranks as the 5th-largest economy in South America. Callao as a deepwater port could serve as an important container hub for the South American west coast, as trade between South America and Asia continues to expand. Peru’s main trading partners are the USA and China.
APM Terminals also operates local cargo inland services company Almacenes de Contenedores Sudamerica (ALCONSA) in Peru, with locations in Callao and Paita. APM Terminals Callao is a joint venture between APM Terminals and Peru’s Central PortuÃ¡ria. The Callao North Terminal concession covers a 30-year term.
“During the first seven months, we were averaging $1 million a week in investments to improve the port. Now, we are just awaiting the final approvals of the Peruvian National Port Authorities of the technical reports to begin Phase I and II of the project which we expect shortly. We are looking forward to start these phases by investing USD 307 million to transform the port of Callao into one of the world’s leading ports and shining star for the country’s economy” said Kristensen.
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