Callao Port Set for $550M Upgrade Following Rise Of Chancay Megaport
Maersk-owned APM Terminals has confirmed a $550 million investment to expand Peru’s port of Callao, with construction scheduled to begin in January.
The two-year project aims to significantly boost the port’s capacity and prepare it to accommodate Ultra Large Container Vessels (ULCVs) capable of carrying up to 24,000 TEU.
The move is expected to strengthen Peru’s position in global trade and enhance its competitiveness along the Pacific coast. The project includes major infrastructure improvements and capacity upgrades tailored to the growing demands of transpacific commerce.
A central objective of the investment is to deepen trade ties with Asia, particularly China and South Korea – two of Peru’s largest trading partners. New direct shipping routes from both countries have begun in November, underscoring Callao’s evolving role as a strategic gateway for Asian imports into South America.
However, the upgrade comes at a critical moment for Peru’s maritime sector. Callao, long established as the country’s primary port and the main gateway to Lima, is facing increasing competition from the rapidly expanding megaport of Chancay, located about 45 miles north. Chancay is undergoing a multibillion-dollar transformation and is expected to become a major regional hub for the region.
Chancay port – widely reported to be 60% owned by Chinese state-owned shipping giant COSCO – is undergoing a $3 billion investment which is expected to be completed by 2032. Its scale and strategic backing have sparked considerable attention as it aims to offer a powerful alternative for international trade routes.
As Chancay rises, APM Terminals’ expansion of Callao underscores a broader competitive shift in Peru’s port infrastructure landscape. With both ports pursuing ambitious growth trajectories, the country is positioned to play an increasingly pivotal role in international trade during the years to come.
