COSCO SHIPPING Ports Limited has announced its acquisition of a 60% stake in Terminales Portuarios Chancay S.A. (Chancay Terminal) from Volcan Compañía Minera S.A.A. for a total consideration of US$225 million, with an initial payment of US$56 million.
COSCO SHIPPPING Ports will partner with Volcan to build Chancay Terminal into an important gateway port in Peru. Chancay Terminal owns the land of the Terminal and doesn’t need to pay for any concession rights, financial resources thus can be placed mainly on the developments of the terminal.
Located 58 km in the north of the Peruvian capital of Lima, Port of Chancay enjoys favorable location where it has easy access to the economic centre of Peru. About 60% of Peru's economic activities are concentrated in Lima and its surrounding areas, and thus, the favourable geographic location of Lima is of strategic importance.
Port of Chancay is a natural deep-water harbor with a maximum of 16 meters water-depth and is capable of satisfying the needs of mega vessels. The construction of Chancay Terminal includes multi-purpose terminals, container terminals, and related infrastructure facilities. Phase one of the terminal will have four berths, of which two are multi-purpose berths, and two are container berths with a total annual designed capacity of one million TEU.
Economic growth of Peru has continued in recent years; container's traffic throughout Peru in 2017 increased to TEU2.5 million (US$0.75 million) from TEU1.5 million (US$0.45 million) in 2010.