Peru taps Chinese firm Jinzhao for New Marcona Port Terminal construction

The Peruvian government has awarded the concession for the construction of the New Marcona Port Terminal to Terminal Portuario Jinzhao Perú SA, a subsidiary of Chinese firm Jinzhao.

The contract, valued at $405 million, encompasses the design, financing, construction, operation, and maintenance of the port terminal located in San Juan de Marcona, in the province of Nazca, Ica region.

This multipurpose port project is expected to reactivate at least nine (9) iron, copper, zinc and molybdenum mining projects in the southern area, such as Pampa del Pongo (US$ 2 billion), Hiero Apurímac, Mina Justa, Insumos, Explotación de Relaves, Los Chancas, Antilla, Trapiche and Constancia.

In addition, the port aims to spur the development of new industrial, commercial and service projects in the area linked to import and export activities.

The announcement was made by the Private Investment Promotion Agency (PROINVERSIÓN) following an exhaustive evaluation process. The process commenced in 2017 as a self-financed private initiative and was restructured to align with state requirements, ultimately being declared of interest on December 20, 2023.

Under the terms of the contract, Jinzhao Peru will be responsible for the operation of the port terminal for a period of 30 years. Construction is anticipated to commence by the end of 2025 or the beginning of 2026, with the first phase of the port projected to become operational approximately two years thereafter.

This development is expected to catalyze economic growth in the region, generating over 1,500 jobs in Marcona during its initial construction stage and positively impacting the development of Ica, Apurímac, Cusco, and Arequipa.

The contract also includes provisions for a Social Fund, allocating 3% of the concessionaire’s annual gross income to finance infrastructure works and social programs benefiting the population of the Marcona district.

Jinzhao is set to become the second Chinese company to construct and manage a port in Peru, a leading global producer of copper. Meanwhile, in northern Peru, a subsidiary of Chinese company Cosco Shipping Ports is in the process of constructing a “megaport” slated to commence operations by the end of this year.