The Chancay Port in Peru has been officially inaugurated, representing a significant milestone in Latin American trade and symbolizing progress within China’s Belt and Road Initiative (BRI).
This $1.3 billion investment aims to enhance shipping efficiency between Peru and China, allowing transit times to be reduced to just 23 days while cutting logistics costs by 20%. With its four deep-water berths, the port can accommodate ultra-large container ships with a capacity of 18,000 TEUs, positioning itself as a crucial trade hub with an annual throughput capacity expected to reach 1.5 million TEUs. China’s President Xi Jinping emphasized that Chancay Port is anticipated to generate $4.5 billion annually for Peru and create more than 8,000 jobs, promising a boost to the local economy.
Strategically placed, the port has direct access to Peru’s capital, Lima, via the Pan-American Highway, facilitating the speedy export of goods such as avocados and cranberries to Asian markets. Peru’s Transport Minister, Raul Perez Reyes, expressed his aspiration for the port to become the “Singapore of Latin America.”
As trade between China and Latin America continues to grow, plans are in place to connect Chancay Port to major cities and expand its reach to neighboring countries, further enhancing trade in commodities like Brazilian soybeans and Colombian coffee.
Chancay Port stands out as South America’s first smart and green port, aimed at improving regional logistics and fostering industrial development. Experts believe it will strengthen ties between China and Latin America, integrating the region more thoroughly into the Asia-Pacific economic framework.
Since its inception in 2013, the BRI has significantly expanded, with cooperation agreements signed by 22 Latin American countries. The trade volume between China and this region reached $489 billion in 2023, highlighting the BRI’s influence in driving economic advancement in the Global South.
The inauguration ceremony, attended virtually by Presidents Xi Jinping and Dina Boluarte, signifies a deepening of China-Peru relations. As Xi stated, the project marks the beginning of a new era of connectivity between Asia and Latin America, enhancing both global trade and regional integration.
This development offers a hopeful outlook for Peru’s economic prospects and showcases the growing collaboration between nations, fostering a vibrant network that promises mutual benefits in trade and industry.
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