U.S. Approves $1.5B Peru Naval Base Relocation Plan

The U.S. State Department has approved a possible $1.5 billion Foreign Military Sale to Peru to support the design and construction of new facilities tied to the relocation of the country’s main naval base in Callao.

The Defense Security Cooperation Agency (DSCA) said it had notified Congress of the proposed sale, which covers maritime and onshore infrastructure design and construction, engineering, logistics, and long-term program support at Callao Naval Base, with the $1.5 billion estimate reflecting the maximum projected value pending final requirements and agreements.

The Pentagon said the project supports Peru’s plan to relocate its naval base a few kilometers from its current site west of Lima, enabling the expansion of the adjacent commercial port of Callao. U.S. officials said the move will reduce civilian-military interaction at the existing facility while providing a safer and more efficient platform for current and future naval and logistics operations.

Up to 20 U.S. government or contractor personnel could be deployed to Peru for as long as 10 years to oversee construction and program execution.

Callao is Peru’s main commercial port and is operated by APM Terminals on the north side and DP World Callao on the south. The port recently launched direct shipping routes to China and South Korea and is expected to compete for Asian cargo with the Chinese-built Chancay port, which began operations in November 2024 and supports direct voyages between South America and Asia. China is Peru’s largest trading partner.