The US State Department has approved a potential $1.5 billion Foreign Military Sale (FMS) to support the relocation and redevelopment of Peru’s main naval base in Callao, a strategic facility located less than 80 kilometers from a Chinese-owned port. The proposal focuses on redesigning naval infrastructure to enhance operational security and efficiency for the Peruvian Navy.
The planned project would relocate the Callao Naval Base, which currently sits adjacent to Peru’s busiest commercial port and shares key waterways with civilian shipping traffic. US defense officials said the move would significantly reduce civilian–military interaction, improving safety while allowing both naval and commercial operations to function more effectively. The relocation would also enable future expansion of the commercial port.
According to the Pentagon’s Defense Security Cooperation Agency (DSCA), the proposed sale would modernize Peru’s port infrastructure to support current and future naval and logistical requirements. The agency added that the deal aligns with US foreign policy objectives by strengthening the security of a key regional partner that contributes to political stability and economic growth in South America.
The announcement comes amid growing US concern over China’s expanding role in Peru’s port sector, particularly the $1.3 billion Chancay port project developed by COSCO Shipping under the Belt and Road Initiative. Operational since 2024, the facility has raised questions in Washington over its potential dual-use capabilities, as it strengthens China–South America trade links while potentially reshaping Pacific shipping routes away from US port infrastructure.
