Port as a catalyst: economic impact of the Salaverry port concession

Abstract

This paper analyzes the impact of the concession of the Salaverry Multipurpose Port Terminal on economic activity in the northern region of Peru, using the difference-in-differences method with data from 651 districts between 2014 and 2021. The results show that districts near the port and those with greater intensity in the construction, manufacturing, and retail sectors recorded significant increases in business licenses. In particular, districts located less than 50 min from the port experienced an average increase of 21.5 business licenses compared to those further away. Additionally, districts with higher construction, manufacturing, and retail intensity experienced an average increase of 2.0 licenses compared to less intensive districts, a figure that rises to 5.8 licenses when considering only coastal districts. The effects were significant starting in 2020 due to the financial closure of the project, which allowed the concessionaire to access the necessary financing to carry out investments for phases 1 and 2. The findings suggest that the concession has had a positive impact on the local economy, supporting the promotion of private investments through Public-Private Partnerships.