Weak development in Peru’s logistics services could prompt operators to seek alternative gateways. This is the main warning expressed by the members of the private sector that has been maturing over the years: in addition to other factors, Peruvian logistics has gaps that do not allow it to fulfill its potential. Although the country has excellent conditions and has had excellent results in many export-oriented sectors of the economy, that window of opportunity will close if it does not improve the logistical insertion of Peruvian companies. Peru’s export sector, therefore, faces a critical moment: to date, the national economy has achieved commendable results in exports of agricultural products, mining, and the development of energy supply. However, logistics has not yet reached the same level of development.
The warning comes from the private investment promotion agency of the Ministry of Economy and Finance (MEF). The argument is that without the development of infrastructure such as ports, roads, airports, and telecommunication networks, the country will be unable to maintain its performance in those segments and, above all, will not be able to consolidate its participation in certain markets that have been captured through recent investments. Without improved logistical development, all that effort could be frustrated in the medium and long term. The lack of transport infrastructure has an impact on the costs of all exporters, and, even worse, limits the capacity of national logistics to keep pace with growing global demand for Peruvian products. As a result, Peru’s favorable location would quickly become irrelevant unless it quickly closes its logistical deficiencies.
Peru’s logistics and the urgent need to increase exports
ProInversión’s executive director, Luis del Carpio, has also insisted on the need to remove bottlenecks in infrastructure. “Our capacity for economic growth is much higher than what our infrastructure can support,” he said in the virtual seminar Foreign Trade and Infrastructure organized by ComexPerú. Del Carpio is pointing to a key issue, which is that the advance of Peru’s export industries continues to occur without improvements in the supporting infrastructure. Peru, in short, has the production capacity, labor, comparative advantages, and much more to grow faster than it has done until now. But logistics infrastructure has not allowed that to happen.
The head of ProInversión recognized that there have been advances in the logistics sector in recent years, thanks to private-sector initiative and the PPPs promoted by ProInversión to get the country to surpass several of its neighbors in this field, from a market-oriented model. He stressed that the country has had the possibility of implementing an infrastructure model in which PPPs can be the great driving force for modernization. But he added that the current challenge is not lower than the previous one and that, in many cases, it could be much greater. The great challenge, which Del Carpio also expressed, is to develop integrated logistics corridors. The goal is to generate a chain between the port, the highways, and the international corridors to seek efficiency and competitiveness. “We are already competing by logistics corridors. We have to focus on that, the competition is no longer port-to-port, but corridor-to-corridor,” he pointed out.
The executive of ProInversión has also emphasized that if the country does not correct its infrastructure and logistics deficit, it runs the risk of losing corridors and routes. As a result, he said, the growth of exports would be limited. “If we do not put value on the fact that timing in logistics is critical for competitiveness, we will lose ground. We have many challenges,” he stressed. With these statements, Del Carpio points to the need for Peruvian logistics to move forward in line with international trends. If countries do not streamline their logistics, in addition to losing time and money, long-term opportunities will be lost because shipping companies and multicompany exporters will be forced to redirect the flow of cargo.
Road and logistics disconnect in Peru generates additional costs
On the other hand, in the same seminar, Raúl Díaz, general manager of Lima Express, also warned of the need to connect the road infrastructure projects in the country with logistics. “The network of roads and logistics is not working hand in hand. This is what causes a lot of inefficiencies to be generated and, in the long run, they are extra costs that limit our development,” he said. In his opinion, it is essential to coordinate infrastructure projects with a long-term vision of mobility oriented towards efficient logistics corridors. Without articulating urban mobility projects with the requirements of freight transportation, Peru will run the risk of building very modern and innovative infrastructure that, in the end, does not fit well into the country’s national and international trade corridors.
Díaz has also indicated that to generate the conditions for investment, it is essential to have legal stability and respect for contracts. Infrastructure investments are long-term in nature, and many projects require years before being able to be projected in construction, even more so in operation. In this regard, he stated that the interest of all should be directed to political will, an issue that must be transcended so that infrastructure projects that benefit the people can be built and adapted to the future challenges of foreign trade. The general manager of Lima Express is therefore also marking the tone, as in a majority among members of the private sector that should be part of decision-making, of what is required to improve Peruvian logistics: institutional stability.
Chancay Port: a model for logistics investment in Peru
In turn, Gonzalo Ríos, deputy general manager at Cosco Shipping Ports Chancay Peru, has stressed that Peru has a geographically privileged position for international logistics. He has also highlighted the country as an example in recent years of the role of private investment in logistics development. However, he stated that the Government must also maintain its role in promoting a stable regulatory framework and in facilitating public-private partnerships. The Chancay megaproject, which will become a new logistics hub for trade between South America and Asia, is an example of the potential of investment when logistical planning is carried out in line with market opportunities in the global economy.
The Peruvian executive, for his part, argued that a comprehensive vision for logistics also requires investments in regulatory aspects and stability that generate greater confidence among domestic and foreign investors. A strong, modernized Peruvian logistics, Ríos stressed, must include investments in infrastructure, technologies, and systems, as well as improvements in regulatory efficiency and in planning to address the new challenges of global trade. He also stated that both PPP projects and other privately capitalized projects are needed, such as the case of Chancay, for Peru to fully take advantage of its potential for exports and logistics. The current evolution of global shipping routes and the growing competition between regional ports is generating a new scenario that will determine whether Peru consolidates its leadership in the region or lags behind others that are more agile.