Cosco Shipping Ports, the port operating unit of China Cosco Shipping Group, has entered into an agreement to invest $225m to acquire a 60% stake in the port of Chancay in Peru, marking the state-run shipping giant’s first foray into South America.
Under the agreement, Cosco will buy the stake from Peruvian mining company Volcan Compania Minera and partner with company for the development, construction and operation of the port.
Port of Chancay is a natural deep-water harbour with a maximum of 16 metres water-depth. The construction of Chancay Terminal includes multi-purpose terminals, container terminals and related infrastructure facilities. Phase one project will have four berths, of which two are multi-purpose berths, and two are container berths with a total annual designed capacity of 1m teu.
“The investment in Chancay Terminal enabled us to further extend our reach to South America. The prospective terminal at Port of Chancay will be the Company’s first terminal in South America and should help reduce the deficiency in port infrastructure in Peru. With an ideal geographical location, Chancay Terminal is poised to be an important gateway port in Peru. With the supports from the parent company and the OCEAN Alliance, we will harness our strengths to enhance the profitability of the terminal in future and achieve sustainable growth to maximize returns to shareholders,” said Zhang Wei, managing director of Cosco Shipping Ports.
It is the second major investment in South American ports by Chinese state shipping companies. In 2017, China Merchants Port acquired a 90% stake in TCP Participações, the container terminal operator of Port of Paranagua in Brazil, for HK$7.23bn ($924m).