"EL MEGAPUERTO DE CHANCAY Y SU IMPACTO EN LA GESTIÓN LOGÍSTICA"

Introduction to the 19th Business Experience Exchange

Opening Remarks

• Dr. Carlos Briolo Vázquez Solís welcomes attendees, including students and colleagues from various campuses of Universidad San Martín de Porres.

• The event is designed as a space for reflection, analysis, and critical evaluation of best business practices.

• It serves as a complementary learning experience to classroom education in administration, international business management, human resources, and marketing.

Importance of the Event

• The session aims to provide firsthand insights into effective business practices and perspectives from key industry players.

• Focus will be on "El megapuerto de Chancay" and its impact on logistics management.

The Megaport of Chancay: A Game Changer

Overview of the Megaport

• Inaugurated on November 14, 2024, it is positioned as the most significant port in the South Pacific.

• The port's operations are set to revolutionize South American logistics by providing direct routes to major Asian ports.

Economic Impact

• Establishment of an economic zone around Chancay is expected to attract both national and international investments.

• Potential sectors include vehicle assembly which could lead to job creation and GDP growth.

Expert Presentation by Dr. Javier Ollarce Cruz

Introduction by Dr. Ollarce Cruz

• Dr. Ollarce expresses gratitude for returning to his alma mater and highlights his long-standing connection with Universidad San Martín de Porres.

Characteristics of Chancay Port

• Describes Chancay as a private public-use port with no state investment; funded primarily by Costco Shipping from China with over $3.6 billion pledged.

• Capable of accommodating large vessels; functions as a regional hub for diverse cargo types beyond just containers.

Logistical Integration and Future Projections

Infrastructure Development

• Plans for efficient integration under modern principles that balance port-city dynamics are discussed.

Construction Status

The Strategic Importance of the Port of Chancay

Geopolitical Significance

• The Port of Chancay is strategically located on the Pacific coast of South America, enhancing Peru's geopolitical position.

• It connects with major ports like Paitas, Salaverry, and Callao, facilitating significant maritime trade.

Economic Impact

• 91% of Peru's exports utilize maritime transport, highlighting the importance of efficient port operations for economic competitiveness.

• The establishment of Chancay aims to reduce logistical costs significantly, improving trade efficiency with Southeast Asia.

Hub Characteristics

• A "Hub" port reduces shipping times from 35-40 days to just 23 days between China and Peru, lowering transportation costs.

• This reduction in transit time enhances Peru's ability to export superfoods while also allowing cheaper imports due to lower freight costs.

Growth Opportunities

• The development of Chancay is expected to stimulate new business ventures based on imported goods from countries like China and Japan.

• Increased logistics services and industrial parks will emerge as a result of enhanced port capabilities.

Future Projections

• The multipurpose terminal at Chancay can accommodate large vessels (up to 24,000 containers), indicating its capacity for significant trade growth.

The Smart Port of Chancay: Transforming Trade in South America

Economic Impact and Competitiveness

• The reduction in transportation costs will allow Peruvian products to enter new markets at more competitive prices, while imported goods become more affordable for local consumers.

• Chancay is the first smart port in South America, utilizing digital platforms for its design, operation, administration, and security.

Technological Advancements

• The port handles over 5,000 container movements daily and will implement 5G technology to enhance operational automation.

• Unmanned electric vehicles are used for container movement within the port, reducing fossil fuel consumption and minimizing CO2 emissions.

Logistical Connectivity

• Four main road corridors have been identified to connect Chancay with key regions: Huacho-Hura-Ollón-Ambo; Guaral-Acos; a route from Chancay to Lima and Callao; and a corridor extending to Pucalpa.

• Current road infrastructure is not optimal for the expected increase in cargo volume once the port operates fully. There’s a need for alternative transport routes.

Future Planning: Rail Corridors

• A recent meeting in Brazil focused on planning a bioceanic train route connecting Brazil's Atlantic ports with Chancay on the Pacific side, enhancing trade links between China and Brazil.

• This rail project aims to facilitate efficient logistics by connecting various production zones across Peru with the smart port.

Capacity and Design Features of Chancay Port

• Designed to accommodate modern vessels over 400 meters long with capacities exceeding 18,000 TEUs (Twenty-foot Equivalent Units), including Triple E class ships.

• The design principles focus on economies of scale, energy efficiency, and environmental improvements—key factors that enhance operational effectiveness.

Environmental Considerations

• Triple E ships feature hull designs that maximize cargo space while using smaller engines that operate at lower revolutions to reduce fuel consumption and emissions significantly.

The Impact of Chancay Port on Peru's Economy

Overview of Chancay Port's Role

• The Chancay port is enhancing Peru's export capabilities, showing month-to-month growth in transportation volumes.

• Key products like coffee, avocado, blueberries, and cocoa will reach international markets faster and more competitively due to the port's operations.

Logistics and Economic Benefits

• With an initial capacity of 1.5 million TOS, Chancay will optimize long-distance routes and reduce container costs, boosting Peru’s global trade competitiveness.

• The port has become a crucial hub for imports from China, with over $12 billion worth of goods imported in 2023 alone.

Consumer Impact and Employment Generation

• Direct shipping routes from Asia are expected to lower logistics costs, benefiting consumers with more affordable prices on imported goods such as electric vehicles.

• The Central Reserve Bank predicts that Chancay will contribute over 1% to Peru’s GDP and create around 50,000 jobs across various sectors including tourism and services.

Future Developments in Chancay

• Significant infrastructure changes are anticipated within five years as the port drives economic dynamism; local youth are encouraged to envision these transformations.

• The strategic connection between South America and Asia through Chancay positions it as a vital logistical hub for regional trade.

Strategic Importance for Investment

• Emphasis on implementing special economic zones is critical for maximizing benefits from the port; this should be approached strategically rather than politically.

• Investors see potential in developing new value chains linked to the efficiencies provided by the port.

Enhancements in Transportation Efficiency

• Current shipping times from Asia have been reduced by about ten days due to direct connections via Chancay.

• The concept of "maritime highways" is being explored to streamline international cargo transport further.

Regional Collaboration Opportunities

• Collaboration with neighboring ports enhances competitive advantages for unloading cargo at Chancay before distributing it regionally.

Port Development and Economic Integration

The Role of Ports in Economic Growth

• Discussion on the strategic importance of Brazil's port for conquering European markets while reducing logistical costs for Peruvian exports.

• Clarification that Chancay and Callao ports will complement rather than compete, with Callao maintaining its established business model.

• Highlighting the current lack of customs warehouses in Chancay’s influence area, which affects operational efficiency.

Infrastructure Developments

• Introduction of the Hancok Industrial Park project as a solution to logistics challenges, located strategically between Chancay and Callao ports.

• Description of Rockel's extensive land acquisition for developing Chancay Park, a logistics and industrial complex linked to the port.

Urban Planning and Economic Zones

• Overview of planned areas within Chancay Park including residential, commercial, green spaces, and industrial zones aimed at enhancing local economy.

• Emphasis on the need for local urban development plan approval from Chancay municipality to initiate construction.

Investment Opportunities

• Details on Proinversión's approval for Hancón Industrial Park encompassing 715 hectares designated for various industries.

• Benefits outlined include reduced operational costs and increased competitiveness through enhanced business interactions among sectors.

Strategic Logistics Clusters

• Promotion of an integrated logistics cluster involving Chancay terminal, Hancón Park, Callao terminals, and Lima airport to boost productivity.

• Explanation of how this cluster aims to alleviate congestion at Callao by improving cargo distribution channels via air freight capabilities.

Future Prospects

• Urgency expressed for municipal authorization to activate Chancay Park and attract foreign investment into logistics distribution zones.

Crisis of Growth in Peruvian Ports

Overview of the Current Situation

• The speaker discusses a "crisis of growth" due to the overwhelming volume of operations at the Callao port, which has exceeded its operational capacity.

• Chancay is introduced as an alternative to alleviate congestion at Callao, aiming for diversification in Peru's port infrastructure.

Future Planning and Integration

• Opportunities for logistical integration are highlighted, including connections with multimodal corridors and future train plans.

• Emphasis on designing future logistics systems, particularly regarding the bioceanic train that will facilitate cargo movement between Brazil and Asia.

Concept of Dry Ports

• The idea of "dry ports" is presented as a solution to reduce congestion at traditional ports by creating distribution zones away from them.

• A dry port would house all necessary government authorities for import/export permits, streamlining processes and improving efficiency.

Importance of Infrastructure Development

• The speaker concludes that Chancay will position Peru as a key entry point for goods into South America, necessitating infrastructure projects like Hancón Industrial Park.

• Collaboration between public and private sectors is deemed essential for enhancing Peru's export capabilities and overall economic growth.

Future Prospects

• Mentioned is the upcoming bioceanic train project funded by Chile and Brazil, which should be prioritized in governmental agendas.

• Potential development of another major port in Corío, Arequipa is discussed; it could surpass Chancay in size and capability if technical challenges are resolved.

Closing Remarks

• The speaker expresses gratitude towards educational institutions involved in this discussion while emphasizing ongoing developments in Peru’s port infrastructure.

Challenges and Opportunities for the Port of Chancay

Overview of Current Export Challenges

• The primary export routes from Peru are limited to de Los Ángeles in the north and Manzanillo in Mexico, causing delays as cargo must first reach these ports before heading to Asia.

• A significant challenge for the port of Chancay is developing its logistical infrastructure, particularly large storage terminals and distribution zones.

Cost Implications of Current Logistics

• Transporting cargo from Chancay to a warehouse in Callao incurs an average cost of $400 per container, negating savings from reduced navigation time.

• There is currently no nearby warehouse at Chancay for unloading cargo, forcing reliance on trucks to transport goods to Callao.

Legal Framework and Institutional Reforms

• Establishing a robust legal framework is crucial for securing investments in the port's development amidst changing political priorities.

• The new general customs law being debated aims to enhance Peru's position as a reliable investment destination by simplifying customs processes.

Environmental Considerations and State Role

• Coscoshipping, the main investor, is implementing environmental protection protocols during construction; however, ongoing assessment will be necessary once operations begin.

• The Peruvian government must maintain oversight and compliance with international environmental standards while attracting investment.

Workforce Development Needs

• The megaport will require specialized professionals not readily available in the local market; there’s potential for job creation across various sectors related to logistics.

• Initial construction efforts revealed a lack of educational institutions offering relevant training; recent interest from academic institutions may help address this gap.

Competitive Landscape with Other Ports

Economic Impact of the Megaport on Peru and Latin America

Beneficial Sectors from Imports and Exports

• The megaport is expected to benefit various economic sectors in Peru and throughout Latin America, particularly:

• Retail trade, including department stores.

• The automotive sector, focusing on exports.

• Mining and agro-exportation industries.

Technological Growth as a Driving Force

• Technology is anticipated to be a significant driver for imports starting next year, with advanced products simplifying daily life.

• Electric and hybrid vehicles are highlighted as key imports that will increase in volume.

Controversy Over Operational Exclusivity

• A controversy arose in 2024 between Costco Shipping and the Ministry of Transport regarding an exclusivity clause that could hinder future investments.

Investment Recovery through Public-Private Partnerships

• The modernization of ports utilizes a successful public-private partnership model, allowing investors to recover their investments over a 30-year period.

• The state does not invest directly; instead, foreign investment funds the projects.

Regional Concerns About Competitive Positioning

• Neighboring countries like Colombia, Ecuador, and Chile express concern over the development of Chancay port affecting their export activities.

• Chilean media reports indicate anxiety about falling behind due to new infrastructure developments like the bioceanic train project.

Conclusion of Discussion