The Chancay Port in Peru, a key initiative under China’s Belt and Road Initiative (BRI), has officially been inaugurated, marking a significant milestone for trade in Latin America. The ambitious $1.3 billion project is designed to enhance shipping efficiency between Peru and China, with transit times reduced to just 23 days and logistics costs decreasing by 20%.
This state-of-the-art port is equipped with four deep-water berths capable of accommodating ultra-large container ships that can carry up to 18,000 TEUs. It is projected to have an annual throughput capacity of 1.5 million TEUs, positioning it as a crucial hub for international shipping. According to President Xi Jinping, the Chancay Port is expected to generate $4.5 billion annually for Peru and create over 8,000 jobs.
Strategically located, Chancay Port provides direct access to Lima via the Pan-American Highway, making it an essential gateway for trade and enabling quicker export of Peruvian goods such as avocados and cranberries to Asian markets. Transport Minister Raul Perez Reyes has expressed ambitions for the port to become the “Singapore of Latin America.”
The establishment of the port comes at a time of growing trade between China and Latin America, with plans to connect it further to major cities and potentially neighboring countries. This initiative may broaden the trade of commodities including Brazilian soybeans and Colombian coffee.
Additionally, Chancay Port stands out as South America’s first smart and green port, which not only aims to improve regional logistics but also stimulates industrial growth. Experts believe this port will strengthen the bonds between China and Latin America, effectively integrating the region into the Asia-Pacific economic landscape.
Since its inception in 2013, the BRI has expanded across Latin America with 22 countries signing cooperation agreements. The trade volume between China and the region reached an impressive $489 billion in 2023, showcasing the BRI’s pivotal role in supporting economic development in the Global South.
The opening ceremony was attended virtually by Presidents Xi Jinping and Dina Boluarte, symbolizing the deepening relationship between China and Peru. As Xi emphasized, the project opens a new chapter in connectivity between Asia and Latin America, further enhancing global trade and regional cohesion.
This development offers hope not just for Peru but for the broader Latin American region, as it seeks to capitalize on improved trade infrastructure and connectivity, fostering economic growth and opportunities for its people.
Leave a comment