Big hardware arrives in Callao

APM Terminals’ USD 750 million expansion project in Callao, Peru has reached an important milestone – the arrival of 4 giant ship-to-shore cranes. The equipment will enable the terminal to receive container vessels as large as 18,000 TEUs.

Callao Peru
The first 4 Super Post Panamax ship-to-shore (STS) cranes arriving in APM Terminals Callao, Peru. The cranes will help double the container volumes passing through the terminal by end of 2015. By 2020, the terminal will have 13 of these cranes in operation.

The Callao expansion project

  • APM Terminals Callao is a ‘brown field’ project, meaning it is an existing port that APM Terminals is expanding.
  • It is a 30-year concession agreement that was awarded in April 2011. The terminal is being renovated and expanded in 5 phases, with approximately $200 million in investment during each phase.
  • It is currently nearing completion of phases 1 & 2. All phases of the expansion are expected to be complete by 2021.

APM Terminals operates a Global Terminal Network which includes 20,300 employees in 67 countries with interests in 71 port and terminal facilities and 165 Inland Services operations.

The $750 million terminal expansion project in APM Terminals Callao received some important hardware recently: 4 Super Post Panamax ship-to-shore cranes and 12 electric rubber-tire gantry cranes.

Addressing a crowd of more than 25 journalists and more than 100 staff and guests invited to celebrate the arrival of the cranes and the eRTGs, Managing Director Henrik Kristensen said “Today we can confirm we are on track to become the hub port for the West Coast of South America.”

The cranes enable Callao to receive the world’s biggest ships, which he explained would help turn Callao into a strategic distribution centre for cargo moving north and south in the region, both lowering costs and improving access to products and markets for all Peruvians, and helping stimulate job creation. (See video)

Building a balanced business
Callao is Peru’s most important port, handling 80% of the trade for a nation of 30 million that has seen its GDP rocket up more than 6.5% each year for the last five years, primarily due to exports of metals and minerals.

Electric rubber
Six electric rubber-tire gantry cranes (eRTG) also arrived, bringing the total in the yard to 12. The eRTGs don’t emit pollution and cost roughly $30,000 a year to operate or about 10% of the cost gas-powered versions.

Callao is Peru’s most important port, handling 80% of the trade for a nation of 30 million that has seen its GDP rocket up more than 6.5% each year for the last five years, primarily due to exports of metals and minerals.

As a multi-port facility—one of eight in the APM Terminals portfolio and the largest—APM Terminals Callao is capable of handling the entire range of cargo that Peru imports and exports, from vehicles and grain, to oil products and containers, putting it in a strong position to help Peru continue its growth.

At present, 70% of the terminal’s business is non-containerised cargo, 30% containers, but the new STS cranes will serve to balance that out.

Henrik
Click image to see Henrik Kristensen, Managing Director of APM Terminals Callao, tell (in Spanish) a crowd of journalists, terminal staff and guests who’ve gathered to see the cranes what kind of impact they will have on Peru and trade.

Today we can confirm we are on track to become the hub port for the West Coast of South America.

HENRIK KRISTENSEN, MANAGING DIRECTOR FOR APM TERMINALS IN CALLAO

Until now, APM Terminals Callao had only one dedicated container vessel berth and two smaller STS cranes to handle operations (with the occasional help of two mobile harbour cranes) compared to the two berths of its competitor and neighbouring terminal operator, Dubai Ports World.

“With these cranes we will be able to double container volumes by the end of 2015 to 1.6 million from 800,000 today,” says Kor Goedendorp, head of the Callao expansion project. “With the other nine STS cranes we will receive in the next 7 years, together with all the other improvements we’re making to the non-containerised side, Callao is going to be a world-class port."

Final Callao
The final approach to Callao after 37 days at sea after leaving China on July 23th.