They have requested that the contract be suspended until such time as a potential conflict of interest has been resolved. This revolves around possible bids for the concessions by operators backed by Chilean capital.

The disagreement has gone public with Adolfo Granadino, the head of the ports union (Fentenapu) accusing David Lemor, the executive director of Próinversion, of not understanding national port laws. Lemor had stated that the tender process was open to international bidders and there was no legitimate basis for discriminating against Chilean investors.

He said that there is nothing in the Peruvian Constitution that defines port concessions as being a matter of national or strategic interest, and accordingly there is nothing illegal about accepting outside investment in the ports. Fentenapu has also criticised Transport minister Verónica Zavala, accusing her of avoiding dialogue with the unions and regions affected by the proposed privatisations.

Meanwhile, in an unrelated development, Chile’s Von Appen family, which owns the Ultramar group, whose interests include a shipping line, shipping agencies and port terminals, has taken a stake in a US$344M project to build a bulk terminal in the Peruvian port of Ventanillas.

Terminal Portuario Ventanillas (TPV), located 12 kilometres from Callao, is being promoted by the Peruvian company Neptunia whose equity is divided between local partners Cosmos Agencia Marítima (53%) and the Von Appen family (47%).

The new facility, which will cost US$80M to build, is due to enter service in the first quarter of 2010, but the scheme is still awaiting environmental clearance from the Peruvian authorities. This has delayed construction work, which was due to commence in December 2007. All construction work will be undertaken by Procura y Construcción.

In terms of facilities, the port will have five berths, able to handle liquid concentrates, oil, bulk minerals, fertiliser and grain. On build-out the facility would occupy 60 hectares and have 3000m of quay linked by an underground conveyor system to a sealed warehouse and storage area.

According to Neptunia’s MD Carlos Vargas the aim is to build a facility to rival anything similar to be found in major ports in Europe or North America. He states the Ventanillas will not compete with Callao, given that the latter sees its future as specialising in container traffic.