Logistics Infrastructure Map - Piura, 2014

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Logistics Infrastructure Map - Lambayeque, 2014

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Logistics Infrastructure Map - La Libertad, 2014

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Overview

Infrastructure in Peru began to develop rapidly thanks to the economic growth that the country had at the beginning of the 90's. By giving many of the ports and airports under concession to private companies, these concession companies greatly improved the infrastructure and the quality of services. Bringing them to international standards regarding services as well as new technology and machinery. In the part of air infrastructure or airport network of Peru, it is made up of 97 aerodromes, 11 of which are international and 86 are national or private. The airport concessionaires have the following distribution: Lima Airport Partner 1, Aeropuertos Del Peru 12, Aeropuertos Andinos 5, Corpac 29, other domestic and / or private operators 50.

It is important to highlight that Peru manages to connect the Pacific and Atlantic oceans through a series of land and river routes. Currently, it has 62 ports, 45 of which are maritime, 11 river and 6 in lake, and the most important are the Salaverry Multipurpose Port Terminal, Ilo Moquegua Port Terminal, General San Martín Port Terminal - Paracas, Pisco, Yurimaguas Port Terminal – Nueva Reforma, Multipurpose Terminal Muelle Norte - Callao, Lima.

The existing National Road Network consists of a total of 27,109.6 km (21,434.0 km of Paved Roads and 5,675.5 km of Unpaved Roads). The Departmental Highway Networks have a total of 27,505.6 km of Roads (They are 3,623.1 km Paved and 23,882.5 km Not Paved). The Neighbourhood Roads Networks have a total of 113,857.9 km (They are 1,858.9 km Paved and 111,999 km Not Paved).

The Railway Network in Peru consists of a total of 1,939.7 km. Of which we have 188.7 km of the Public Network, 1,512.4 km of the Public Concession Network, and the Private Network 238.6 km. The 33.1 km of the Lima Metro is not considered, since it is not interconnected to any network, it only fulfills the role of mass transport and depends on the Autonomous Electric Train Authority.

The Ministry of Transportation and Communications has prepared the Transportation Logistics Services Development Plan. This Plan is conceived as a tool for analysis, evaluation, planning and promotion that will enable to face the main challenges posed to the Peruvian transportation, logistics and industry sectors in order to enhance their future competitiveness.

The Transport Logistics Services Development Plan aims to:

1. Design the strategic development framework for a sustainable and efficient logistics scheme that utilizes and logically integrates Peru's specific potential and facilitates the competitiveness and attractiveness of national products;
2. Define, in coherence with the previous point, the needs for the development or evolution of logistics centers and platforms, integrating the existing elements in the different modes of transportation, in order to propose and plan a network of infrastructure and logistics services integrated over the Peruvian territory;
3. To help develop and consolidate an advanced integrated and intermodal logistics offer and infrastructure in the different strategic nodes of Peru, as centers with potential for value-added logistics services and activities.

Logistics Services System in Peru

Conceptual outline of development. The diagnosis of the Peruvian logistics system has shown that although the needs of domestic logistics chains are important, the Peruvian system is currently positioned -and effectively serving- global logistics chains. In particular, the logistics and port supply of El Callao stands out. The size of the hinterland, the country's significant efforts to modernize port infrastructure, and the way demand and supply have reacted have made Callao a second-ranking port hub in the Pacific.In summary, Peru's current functional model presented in the diagnostic phase is as follows:

1. Regarding to the first-tier logistics nodes, the Lima-Callao node is predominant in the national logistics context. This center organizes the trunk distribution activity to the south and north of Peru, in addition to acting as a capillary distribution node for the central regional area. The new port infrastructure of Lima-Callao has consolidated its role as a secondary maritime hub in the Pacific, and this trend is likely to continue. In the north of the country, there are three second-tier nodes: Trujillo, Chiclayo -which serves as a hub for the logistics axis to Yurimaguas and Iquitos- and the Paita-Piura nodal pair, mainly linked to the port. In the southern region, the main node is Arequipa, which operates as a regional distribution center for goods to Juliaca-Puno, Cusco, Moquegua-Ilo, Tacna, etc. The eastern region of the country has strong Amazonian-trans-Andean links, particularly from Iquitos to Yurimaguas and Pucallpa, and from there to Tingo María-Huánuco and Lima; also, from Puerto Maldonado to Cusco and Juliaca-Puno. Finally, there are areas of cross-border trade based on foreign trade operations with neighboring countries by road (Tumbes, Tacna, Desaguadero, and Iñapari).
2. All of the above translates into the existence of four logistic basins: the Central Logistics Macro-area, which includes the activity of the Lima-Callao node and the activity of the Sierra-Centro with the former; the Southern Peru Logistics Macro-area, centered on the Arequipa node and with the complementary nodes of Juliaca-Puno, Cuzco and Tacna, which include links with Brazil, Bolivia and Chile through the border centers of Iñapari, Desaguadero and Santa Rosa; The North-West Logistics Macro-area includes the Paita-Piura logistics axis and the border relationship with Ecuador; and finally, the North-East Logistics Macro-area, with the center of gravity in the Chiclayo node as the main articulator, and which includes relations with Trujillo and towards the East with Yurimaguas and Iquitos, from where the fluvial relationship with Brazil is organized.
3. Finally, there are two national structuring axes focused on Lima-Callao, which organizes activity towards the north coast and along the south coast to Arequipa, parallel to the coast along the Pan-American Highway by road. There is no complementarity with the railroad mode despite its high traffic rates. There are also secondary consolidated logistics corridors and others with consolidation potential that could improve efficiency in Peru's logistics chains. In the Southern Region there are consolidated logistics axes, and the opportunities for consolidating relations derive from the IIRSA South and the development of transportation infrastructure and services; which will contribute to the consolidation of the Ilo-Moquegua-Desaguadero, Abancay-Nazca, Arequipa-Tacna, etc. axes. In the north, the Chiclayo-Chachapoyas-Tarapoto-Yurimaguas axis is consolidated and will be complemented with the consolidation of the Paita-Piura-Yurimaguas axis. The axis connecting Iquitos with Yurimaguas and Pucallpa has the potential for future consolidation by improving river transport services between the two.

Based on the above analysis and the national freight transportation model developed, 22 logistics corridors and a main node, Lima-Callao, have been identified, along which most of Peru's freight traffic moves. The table below shows the codification and description of each of the logistics corridors identified.

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The description of the conceptual model of logistics development, the best alternative being a mixed development model (international-domestic). For this purpose, it is necessary to describe in more detail the selected model. The mixed model of development of the national logistics system, as its name suggests, is a model that combines the development of all components of the logistics system - infrastructure, services and processes - in support of the international market for these services and the domestic market.

The international market segment demands very efficient infrastructure and services in the border nodes -maritime, air and land-, with very attractive costs and quality for the user of the international physical distribution system. In general, the logistics services offered here are complementary to the foreign trade (border) activity, and the logistics processes are those usually included under the denomination "trade and transport facilitation" (see Table N° 2 below).

The domestic market segment, on the other hand, demands infrastructure to support domestic distribution of goods and urban or last mile logistics. Services are associated either with support for the preparation of products for final consumption or for their export.

Components to be developed in a Mixed Logistics Model

Infrastructure

• Ports and airports well integrated to the global cargo distribution network.
• Network of logistics platforms associated with the main foreign trade nodes.
• Trunk cargo highways
• Road border crossings
• Logistics infrastructure to support maritime, air and land border operations.
• Specialized nodal infrastructure to support distribution and last-mile logistics
• National network of truck centers on concessioned roads
• Secondary road networks serving national trunk movements
• Tertiary networks providing access to major rural production centers

Services

• International quality standards
• Consolidation and deconsolidation
• Warehousing under customs custody of goods in transit or under temporary regime
• Service to empty containers
• International transportation
• Cross-docking,
• Customs brokerage and freight forwarding
• Cold storage facilities, Service to international carriers
• Packaging
• Palletizing and unitizing
• Labeling
• Warehousing and inventory management
• Cross-docking
• Express parcels
• Return logistics
• Transportation, removals and deliveries
• Postponement
• Assembly
• Transportation and refrigerated facilities
• Order preparation
• Purchasing and invoicing

Processes

• Simplification of customs procedures, harmonization of border procedures and single windows for foreign trade.
• Reduction of non-tariff barriers applicable to the transportation sector (standardization of limits, weights and dimensions, transit facilitation for third-country operators).
• Security management and security monitoring

Domestic market segment

• Cargo tracking
• Customer service and return logistics management
• Freight exchanges
• Training and professional certification processes.
• Information and dissemination system.
• Logistics observatory

The main objective of defining these scopes has an impact on the prioritization of investments, the definition of the system's management and promotion model, the institutional model to be adopted and the roles of the public and private sectors. The adoption of the mixed model implies that the State is involved in the active promotion of all the components of the system and not only, as has been the case to date in Peru, in the components of the system aimed at serving the last stages or links in the foreign trade logistics chains.

The standards to be met by the system are necessarily linked to the relative hierarchy of the system's components. These standards are related not only to capacity and quality, but also to the comprehensiveness of the solution.

This means, for example, that investment in high-capacity port infrastructure alone is not enough to ensure a high standard; such a standard would be ensured with a smooth and efficient integrated system: fluid access, segregation of local flows from international flows, adoption of state-of-the-art information technologies to ensure port movement. A port that does not have the relevance of El Callao would not need to meet such high standards, not only because the demand is lower, but also because the investments involved are also lower.

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HISTORICAL MAP OF CRITICAL POINTS OF THE NATIONAL ROAD NETWORK

According to the map of critical points that the Ministry of Transport and Communications has identified through Provias, the sections of the national road networks, with high probabilities of being affected by natural phenomena (landslides, mudslides and platform erosion) are concentrated in the central zone from the country.

CENTER ZONE - National Road Network and Aerodromes

The figure shows the national road network (Center), highlighting the potential sections to be considered as part of a potential air bridge, as well as the aerodromes that could serve as the axis of said air bridges.

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SOUTH ZONE - National Road Network and Aerodromes

The figure shows the national road network (South), highlighting the potential sections to be considered as part of a potential air bridge, as well as the aerodromes that could serve as the axis of said air bridges.

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