DP World, a leader in international port terminal operations and development, logistics and related services has announced that it has been granted a 30 year concession to develop and operate a new container terminal in the southern zone of the Port of Callao, Peru. The concession has been awarded by the Agency for Investment Promotion (Proinversion) and the National Port Authority (APN).

A Joint venture in which DP World will own 70% of the development company through its subsidiary P&O, with the balance held by a local Peruvian partner, the Unimar group of companies will develop and operate facility at Callao. The closing date for the signing of the concession contract is scheduled for 19 July 2006.

Callao is the largest and fastest growing container port on the west coast of South America with a compound annual growth rate of over 14% per annum since 2000. The new terminal will become the first facility in the Port to be equipped with gantry cranes with nine in operation by the completion of the project.

The new facility will initially be constructed with two berths comprising 660m of quay line and 22 hectares of yard, which, dependent upon the timing of the relevant permits and approvals, could be operational in the second half of 2009. Further development will be phased in line with demand growth with total capacity projected to reach 1.35 million TEUs (twenty foot equivalent container units). Preliminary estimates of capital expenditure are approximately US$210 million for the first two berths. The berths will initially be capable of handling vessels of 5500 TEU nominal capacity.

DP World Chairman Sultan Ahmed Bin Sulayem said: "We are extremely pleased to have been selected as the preferred bidder by the Peruvian Government. We look forward to using our expertise to develop a world-class container terminal at Callao that will bring significant economic benefits to Callao and its surrounding areas, which in turn will help Peru continue its impressive growth".

DP World Senior Vice President and Managing Director of the Americas, Dave Sanborn said: "Peru is an important addition to our Latin America portfolio, which also includes Puerto Cabello in Venezuela and Buenos Aries in Argentina. With efficient services offered through Peru in the west, Venezuela in the northeast and Buenos Aries in the east, importers and exporters will have greater choice and better access to this important market."