Xi Jinping is in Peru today for the opening of a giant port which the Chinese are billing as transformative for trade connectivity between Latin America and Asia.
Chancay port on Peru’s Pacific coast is a huge $1.3bn project majority-owned by COSCO, located some 70 km north of the capital, Lima, a flagship Belt and Road endeavour in Latin America.
When fully complete – with investment totalling $3.6bn – Chancay will boast 15 quays with depths alongside of 17 m and a huge industrial park.
The port’s backers will look to extend its hinterland deep, attracting Brazilian customers with a Pacific outlet for shipments to Asia. ‘From Chancay to Shanghai’ has become a slogan regularly put out by Chinese media in recent weeks.
Brazil and Peru are connected by the Southern Interoceanic Highway, which passes through the Brazilian agricultural hubs of Acre and Rondônia.
COSCO has outlined plans to use feeder ships to get cargoes from Colombia, Ecuador and Chile, whose cargo will later be shipped to Asia from Chancay, initially in ships carrying up to 14,000 containers, which will then be progressively increased to larger vessels holding up to 24,000 teu.
The Chinese president is in Peru this week attending the Asia-Pacific Economic Cooperation summit.
Peru’s current main container port, Callao, has seen significant upgrades this year from its two main investors, DP World and APM Terminals.
