The Chancay Port in Peru, a key component of China’s Belt and Road Initiative (BRI), has officially opened, marking a significant advancement in trade within Latin America. This $1.3 billion investment is poised to enhance shipping efficiency between Peru and China, reducing transport times to just 23 days and slashing logistics costs by 20%.
The facility boasts four deep-water berths capable of accommodating ultra-large container ships with a capacity of 18,000 twenty-foot equivalent units (TEUs). With an anticipated annual throughput of 1.5 million TEUs, Chancay Port is set to establish itself as an essential logistics hub. President Xi Jinping emphasized that the port is expected to generate $4.5 billion annually for Peru and create over 8,000 jobs.
Situated strategically, the port connects directly to Lima through the Pan-American Highway, positioning Peru as a crucial trade conduit that can expedite exports of goods such as avocados and cranberries to Asian markets. Peru’s Transport Minister, Raul Perez Reyes, has expressed ambitions for the port to become the “Singapore of Latin America.”
The project is in line with the increasing trade interactions between China and Latin America, with plans underway to connect the port to significant urban centers and potentially other nations, thereby boosting the trade of various commodities, including Brazilian soybeans and Colombian coffee.
Chancay Port is recognized as the first smart and green port in South America, aimed at improving regional logistics and encouraging industrial development. Experts predict that it will strengthen ties between China and Latin America, integrating the region more seamlessly into the Asia-Pacific’s economic landscape.
Since the inception of the BRI in 2013, it has seen substantial growth, with 22 Latin American nations entering into cooperation agreements. Trade between China and Latin America surged to $489 billion in 2023, highlighting the BRI’s crucial role in fostering economic progress in the Global South.
The port’s inauguration, attended virtually by Presidents Xi Jinping and Dina Boluarte, symbolizes the deepening relationship between China and Peru. As President Xi remarked, the project marks a new phase of connectivity between Asia and Latin America, paving the way for improved global trade and increased regional integration.
This development not only exemplifies the potential for economic growth in Peru but also reflects a broader trend of international cooperation aimed at enhancing trade and infrastructure across regions.
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