CALLAO PORT

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The Port of Callao Expansion Project will provide a loan to the Port of Callao Authority of $6.575 million equivalent to meet the foreign currency cost of the expansion of the Port. Callao is the principal port of Peru and handles 60 percent of the country's imports and exports. Traffic through the port is steadily increasing. The expansion program will provide additional accommodation for the expected increase in traffic and will replace existing unsatisfactory facilities by modern installations. The program will consist of the construction of a new petroleum handling pier, a new mineral pier with mechanical loading equipment, two new general cargo berths, the acquisition of a dredger and dredging, new sheds, and passenger accommodation. The investment involved will be justified by the operational needs of the port, by the benefit to shipping of improved turn-around, by reductions in the cost of handling Peru's main exports, and by the advantage to the country of ensuring that its principal port will be free from congestion. The project is generally sound. The Port of Callao Authority which has operated profitably since its inception in 1952 should continue to be a profitable undertaking after the project is completed.