Callao South Dock Container Terminal

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In July 2006, DP World Callao S.A. signed a 30 year contract with the National Port Authority of Peru to build, construct, design, finance, maintain, and operate a new container terminal at the southernmost zone of the Port of Callao. The tender process and promotion of the investment was organized by ProInversion, the private sector development agency of Peru. The concession is a result of the “Plan Nacional de Desorollo Portuario”, a national plan to develop Peru’s ports implemented on March 10, 2005. The contract was awarded in June 2006 through a competitive tender process that consisted of two stages. In the first stage, three qualified bidders presented tariffs. Since the bids were essentially equal, the state asked each consortium to provide an “Additional Complimentary Investment” that would benefit all users of the Port of Callao such as better access to terminals and increasing the depth of the entire port. International Container Terminal Services, Inc (ICTSI) and Consorcio Dragados Ransa bid approximately US $100mn while Terminal Internacional de Contenedores del Callao (representing DP World Callao S.A.) won the tender by offering US $144mn. In 2006, DP World Callao S.A. was owned by DP World [United Arab Emirates, 70%] and Uniport S.A. [Peru ,30%]. The first phase of the project included the US $144mn “Additional Complimentary Investment” for the improvement of the entire Port of Callao. Works had an estimated completion date of 2010. The port was to start with an initial capacity of 830,000 TEU’s which would gradually increase to 1,250,000 TEU’s. The contract listed the minimum construction requirements as follows: 1) Demolition of Dock 9 2) Demolition and preliminary terraforming 3) Paving, installing and building 4) Dredging 5) Preparing the warehouse area 6) Construction of the first berth of the dock 7) Supplying equipment for the operation of the first berth 8) Dredging the access canal to the Port of Callao 9) Other works that the concessionaire deems necessary for the operation of the first berth. The total project cost was estimated at US $439 million and reached financial closure in October 2008. The financing comprised US $300 million in debt and US $139m equity provided by DP World. The debt to equity raitio was 68:32. The US $300m term loan had a maturity of three years with possible extension to five years. Standard Chartered, WestLB, SG, Bank of Nova Scotia, KfW, HSBC, DnB Nor, and BBVA were the mandated lead arrangers on the club deal. In October 2010, the port became operational, approximately one year ahead of schedule. Anil Mohta at DP World +1 704 887 4943 UPDATE Spoke with Anil Mohta on 04/09/2008 He said that construction started and sufficient financial resources had been available as of December 2007. Estimates for Phase 1 were US $500 million. This figure included US $144 million to be paid to the Port authority for upgrades at the larger port of Callao.