The U.S. State Department has approved a potential $1.5 billion sale of equipment and services to Peru to support the country’s plan to shift its main naval base in Callao, according to a statement from the Pentagon.
The proposed relocation aims to allow for the expansion of Peru’s main commercial port in Callao, which competes with the Chinese-built Chancay mega-port located north of Lima. The move is part of broader infrastructure investments along Peru’s Pacific coast as competition for Asian cargo increases.
“The proposed sale will contribute to the foreign policy objectives of the United States by helping to improve the security of an important partner that promotes political stability, peace, and economic progress in South America,” the U.S. Defense Security Cooperation Agency said in a statement regarding the proposal. The agency also confirmed it had issued the necessary proposal to inform Congress about this potential sale.
The principal contractors for the project will be selected later from a list of approved vendors, likely through a competitive process, according to the Pentagon. The port in Callao is currently operated separately by Dutch port operator APM Terminals on one side and DP World Callao on another.
Callao began offering new direct shipping routes from China and South Korea in November, increasing its competitiveness with Chancay for Asian cargo shipments. The Chancay port, built by Cosco Shipping Ports, started operations in November 2024 and accommodates large vessels with direct voyages between South America and Asia. China remains Peru’s primary trading partner.
Peru’s defense ministry did not immediately respond to a request for comment sent outside regular business hours.According to Reuters.
