The U.S. has notified Congress of a potential $1.5 billion sale to help Peru relocate its main naval base in Callao so the neighboring commercial port can expand. The move would free space to increase Callao's cargo capacity and strengthen direct shipping links with Asia. U.S. officials say the sale supports American foreign-policy goals by bolstering a key partner in South America. Contractors will be selected later, likely through competitive bids.
U.S. Clears Possible $$1.5B Sale To Help Move Peru's Naval Base And Expand Callao Port
Workers handle containers at APM Terminals in the port of Callao, in Callao, Peru November 19, 2025. REUTERS/Gerardo Marin
The U.S. State Department has authorized a proposed sale of about $1.5 billion in equipment and services to Peru to support the country's plan to relocate its primary naval base in Callao, the Pentagon said. The relocation—just a few kilometers from the current site west of Lima—will free land for the expansion of Callao's adjacent commercial seaport.
The U.S. Defense Security Cooperation Agency (DSCA), in notifying Congress of the potential sale, said the package "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 agency confirmed it had submitted the required notification to inform lawmakers.
According to the Pentagon, principal contractors for the project will be chosen later from a list of approved vendors, likely through a competitive bidding process. The proposed sale covers equipment and services intended to facilitate the base relocation and associated infrastructure work.
Callao is Peru's main commercial terminal and is currently operated in two sections: the north side by Dutch operator APM Terminals and the south side by DP World Callao. In November, the port began offering new direct shipping routes from China and South Korea, strengthening its connections to Asian markets.
The planned expansion is widely seen as positioning Callao to compete with the Chinese-built Chancay mega-port about 80 km (50 miles) north of Lima. Chancay, constructed by China’s Cosco Shipping Ports, began operations in November 2024 and can accommodate very large vessels with direct voyages between Asia and South America. China remains Peru’s largest trading partner.
Peru's Defense Ministry did not immediately respond to requests for comment outside regular business hours.
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