The Chancay Port in Peru, a significant project under China’s Belt and Road Initiative (BRI), has officially opened its doors, marking a pivotal moment for trade in Latin America. The $1.3 billion investment aims to enhance shipping efficiency between Peru and China, decreasing transit times to just 23 days and lowering logistics costs by 20%.
With four deep-water berths, the port is designed to accommodate ultra-large container ships capable of carrying 18,000 twenty-foot equivalent units (TEUs). It is expected to play a crucial role in regional trade, with an projected annual throughput of 1.5 million TEUs. Chinese President Xi Jinping emphasized the economic benefits, predicting that the port will generate $4.5 billion annually for Peru and create over 8,000 new jobs.
Chancay Port’s strategic location provides a direct connection to Peru’s capital, Lima, via the Pan-American Highway, facilitating quicker exports of products such as avocados and cranberries to Asia. Raul Perez Reyes, Peru’s Transport Minister, envisions the port evolving into the “Singapore of Latin America.”
In response to rising trade demands between China and Latin America, plans are underway to further integrate the port with major urban centers and possibly other countries, enhancing trade in key commodities like Brazilian soybeans and Colombian coffee. Notably, Chancay Port is also South America’s pioneering smart and green port, aimed at improving logistics and stimulating industrial growth in the region.
Experts predict that this development will fortify ties between China and Latin America, connecting the region more closely to the Asia-Pacific economy. Since its inception in 2013, the BRI has seen collaboration agreements with 22 Latin American nations. The trade volume between China and Latin America reached an impressive $489 billion in 2023, highlighting the BRI’s significant role in advancing economic progress in the Global South.
The port’s inauguration, attended virtually by Presidents Xi Jinping and Dina Boluarte, represents both a milestone in China-Peru relations and a new era of connectivity between Asia and Latin America, ultimately enhancing global trade and regional integration.
This development holds great potential for improving Peru’s economy and fostering closer ties with other countries in the region, providing opportunities for growth and collaboration in the future.
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