CALLAO, Peru, Nov 19 (Reuters) – APM Terminals, a Dutch port operator, plans to invest $550 million to expand the Callao port in Peru starting in January, according to Fernando Fauche, the company's chief commercial officer for Peru.

This project, which will take two years, aims to boost the terminal's capacity to 24,000 containers. Fauche shared this information with reporters during an event that announced the start of direct shipping routes from Asia to the port, located on Peru's central coast.

Starting in November, Callao port has begun offering new direct shipping routes from China and South Korea, reducing transit times to about 23 days, as confirmed by port officials. This service is intended to strengthen trade relations with Asia and position Callao as a significant Pacific hub for imports.

Initial shipments have included retail products from Chinese e-commerce sites like Temu, Fauche noted.

He mentioned, “Shipments are fully booked for the next six weeks. There’s demand.”

APM and local port authorities view the nearby Chinese-built Chancay megaport, located north of Lima, as “complementary.” However, industry analysts caution that both ports may end up competing for Asian cargo as investment in infrastructure along Peru's Pacific coast increases.