The Government of Peru, through the National Port Authority (APN) and the Ministry of Economy and Finance (MEF), signed an addendum to the concession contract of the Matarani Port Terminal (TPM), which guarantees the advance of the investment of approximately US$700 million by the concessionaire to modernize Matarani port.
It is a fully private investment that the private sector is willing to make, betting on the Peruvian economy to remain a stable and prosperous country.
The project that was presented by the private company, which was analyzed by PROINVERSIÓN and the Ministry of Economy and Finance (MEF), contemplates the expansion of the operating area of the port by approximately 50%, which will allow, among other things, to increase its cargo handling capacity. This will contribute to the development of the South through improved logistics and competitiveness.
With this project to modernize Matarani port, the aim is to strengthen its position as a logistical hub for the southern macro-region, with emphasis on the mining, agro-export, industry, and commerce sectors.
The signing represents a step towards regional development
The signing of the addendum, which guarantees the advance of private investment, shows the Peruvian State’s will to promote decentralized development, fostering growth in regions outside the capital.
“The investment to modernize Matarani port and strengthen the south is possible thanks to the state-private partnership that we have forged with clear guidelines for the benefit of the regions. This investment means new job opportunities for families in these regions and positions Matarani as an even more strategic logistics hub for the export and import of goods, “said José Jerí, President of the Republic.
Thanks to this project and the investment advanced by the private sector, the government is working to ensure that economic growth is also located in the southern macro-region.
The APN, in coordination with the MEF, the Ministry of Transport and Communications (MTC), and PROINVERSIÓN, advanced a payment guarantee to the concessionaire, who will advance the private investment for the modernization and expansion of the port to materialize and deliver the project as soon as possible.
The modernization investment represents the clear trust of the private sector in the government’s management of the Peruvian economy.
“This signing is proof of the strong signal that the private sector trusts our economy and sees in Peru a destination for its strategic investments. It is a tangible sign of our policy, which seeks to promote economic growth, generate formal employment, and improve the quality of life of families in the regions,” said Denisse Miralles, Minister of Economy and Finance.
The investment will be financed through private capital
The approximately US$700 million investment will be 100% financed by the private concessionaire, without using public resources for its expansion. The addition of this amount of capital shows the confidence of the private sector in the country’s investment climate, where Peru is increasingly recognized as a safe haven for investment, in addition to showing the predictability of a government that is committed to encouraging private investment in the country and to putting in place the necessary tools to ensure that Peru remains competitive.
Matarani Port Expansion and Modernization Project
The investment will be used to improve the terminal’s infrastructure, including a new multipurpose berth that will have a breakwater that allows the handling of vessels up to 60,000 DWT; also, a mineral storage warehouse with a capacity of 40,000 metric tons will be built.
Likewise, there will be a modern 4.6-hectare container yard. In addition to the improvements to the multipurpose berth, the investment also includes an improvement to Muelle ABC. This improvement will increase the depth of the existing berthing to expand its offerings in the different types of cargo to be handled at Matarani port.
In total, the investment modernization, expansion, and improvement project to be executed by the private company reaches approximately US$700 million.
Signing for 30 years more in the operation of the port
The addendum was signed by the National Port Authority (APN), on behalf of the State, and by TISUR, of the Tramarsa Group, which generates a concession extension of 30 more years in the operation of the Matarani port.
With the signing of this addendum, the Government of Peru ensures the continuity and execution of the project, which includes the modernization of the Matarani port.
The mining sector can grow 39% in the south
Minister of Transport and Communications Aldo Prieto stated that “this investment, which allows expanding the Matarani port, will position this hub as a logistics point for southern Peru, given the intermodal character of the terminal that will also serve the mining sector of Arequipa and Moquegua.”
“The port of Matarani has a fundamental role in the shipping of fishmeal, and this additional investment will allow consolidating this bulk port as the main warehouse of the country and generating more trade integration in the south of the country, where we estimate mining activity could grow up to 30%, ” he added.
The private sector, stated by Renzo Grandchamp
According to Renzo Grandchamp, CEO of Transport and Warehousing Logistics, a system operator port of Peru, projects a 40% increase in cargo traffic, both national and international, at Matarani, compared to the levels registered during 2021.
“The greater growth will be expected in agricultural cargo, followed by minerals and vehicles. A sharp increase in the value of exports and imports will be experienced by 2025, influenced by the renewal of the Matarani concession. The estimated flows for the port terminal in 2025 are 12.79 million tons. On the other hand, a decrease in export ton-kilometers is expected in 2025 (-1%) compared to 2021, with a general decline in flows in the other ports,” he pointed out.
The Cargo Potential to be handled from Matarani Port
The main variable that determines the logistic potential in the different ports is the volume of cargo that can be handled each year.
In this sense, the amount of cargo that could be handled per year at the Matarani Terminal is close to US$11 billion, an investment in the south of the country. Of this figure, 73% corresponds to public investment that has already been materialized or has already been called, and the remaining 27% refers to private investment.
For the portfolio of transport concessions, the data shows a significant concentration in mining concessions, with 11 projects in this sector, followed by fisheries and cargo.
The execution portfolio is equivalent to US$2,742 million. In this scenario, the projections for 2025, considering the execution of concessions granted in the last four years (the portfolio includes a total of 24 concessions), indicate a significant increase in the amount of cargo being transported by road, expected to reach 13.69 million tons in 2025.