The United States has cleared a proposed $1.5 billion Foreign Military Sale aimed at supporting the design and construction of new facilities for Peru’s primary naval base in Callao, a strategic location near a Chinese-operated commercial port. The project would enable Peru to modernize its naval infrastructure while improving separation between military and civilian maritime activities.
Under the proposal, Peru’s naval base would be relocated away from the country’s busiest commercial harbor, where naval vessels currently operate alongside merchant shipping. US officials said the redesign would improve operational safety, force protection, and logistical efficiency, while freeing up space for expanded commercial port operations in Callao.
The Defense Security Cooperation Agency noted that the project would help Peru better support naval missions and logistics operations over the long term. The agency emphasized that the initiative also serves broader US strategic interests, reinforcing maritime security cooperation with a trusted partner in the region. If approved, contractor selection would occur through a competitive process, with up to 20 US government or contractor personnel deployed to Peru for as long as 10 years to oversee construction and management.
The decision follows heightened US scrutiny of China’s growing footprint in Latin American ports, particularly the COSCO-operated Chancay port north of Callao. Developed at a cost of $1.3 billion and operational since 2024, the port is expected to deepen trade between China and South America, while raising concerns in Washington about dual-use infrastructure and the potential diversion of Pacific trade flows away from US-controlled maritime hubs.
