Perus ports need $2bn

Furthermore, the World Economic Forum, which has analysed port infrastructure in 139 countries, suggests as part of its Global Competitiveness Report for 2010-2011 that Peru has improved from 126th place to 113th thanks to private sector infrastructure projects amounting to $968m, of which $734m is being spent on a new container terminal at Calllao, $228m on the Paita port terminal and $6m at Matarani.

Bolivia is also keen to see development at Ilo, which would serve as an alternative to ports in Chile as an outlet for its minerals traffic.

A project to upgrade the existing port has a budget of $300m and should be completed within five years. The cost will be divided equally between the governments of Bolivia and Peru.

In the meantime, both political representatives and port workers in Callao have criticised the tender aimed at modernising Terminal Norte. The fear is that the government wants to privatise the entire ports industry in the country, although unions are threatening to go on a national strike to stop this. There are calls for the National Ports Authority, Enapu, to retain a 51% strategic stake in any sell-off.