Cosco Shipping Buys 60% Stake Peru's Chancay Terminal

Global ports operator Cosco Shipping Ports acquiring 60% stake in Terminales Portuarios Chancay (Chancay Terminal) from Volcan Compañía Minera for a total consideration of US$225million.

Zhang Wei, Vice Chairman and Managing Director of Cosco Shipping Ports and  José Picasso, Chairman of Volcan signed the agreement on behalf of the two parties.

The ceremony was witnessed by Mercedes Aráoz, Vice President of Peru,  Xiao Yaqing, Chairman of State-owned Asset Supervision and Administration Commission of the State Council, PRC, among others.

Cosco Shipping 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.

Economic growth of Peru has continued in recent years; container throughout of Peru in 2017 has increased to 2.5 million TEU from 1.5 million TEU in 2010. 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.  

Port of Chancay is a natural deep-water harbour 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.

Xiao Yaqing, Chairman of SASAC expressed his view that, “Planned to be a modern terminal, upon completion of the construction of Chancay Terminal, the port will not only further strengthen the international operational capabilities of Chinese corporations, but will also further enhance the economic development of Peru. I hope the two companies will implement the project in a practical way and lay strong foundation for the extensive cooperation between the two countries, thus help promote economic development and prosperity of China and Peru.”

Captain Xu Lirong, Chairman of Cosco Shipping said: “Chancay Terminal is the first terminal project invested by Chinese companies in South America, which has received great attention and support from both Chinese and Peruvian government. Volcan is one of the world’s leading polymetallic mining companies. To cope with its business development, Volcan has started the research work of the construction of terminal in the Port of Chancay many years ago. The cooperation will enable the two parties to fully utilize resources and leverage the capabilities to jointly develop Chancay Terminal to an important hub port in Latin America and a gateway port in the Pacific Ocean which should help promote local economic growth.”