U.S. Approves Potential $1.5 Billion Naval Support Sale to Peru for Callao Base Relocation

The U.S. State Department has approved a potential $1.5 billion sale of equipment and services to Peru to support the relocation of the country’s main naval base from Callao, the Pentagon confirmed on Thursday. The proposed deal is intended to aid Peru’s efforts to shift its naval operations a few kilometers away from Callao, located west of Lima, enabling expansion plans for the adjoining commercial port.

According to the U.S. Defense Security Cooperation Agency (DSCA), the sale would advance Washington’s foreign policy objectives by strengthening the security of an important regional partner. The DSCA said the required proposal has been issued to notify the U.S. Congress about the potential sale, while the Pentagon noted that principal contractors will be selected later through an approved vendor list, likely via a competitive process.

The relocation move is expected to support the growth of Peru’s main commercial port at Callao, which is increasingly positioned as a competitor to the Chinese-built Chancay mega-port, located about 80 km north of Lima. Callao’s port, operated by APM Terminals and DP World Callao, has recently launched direct shipping routes from China and South Korea, while Chancay—developed by Cosco Shipping Ports—began operations in November 2024 and is designed to handle large vessels with direct South America–Asia voyages.

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