Chancay Port: A New Gateway for Trade Between Latin America and Asia

The Chancay Port in Peru, a flagship project of China’s Belt and Road Initiative (BRI), was officially inaugurated, marking a transformative step in Latin American trade.

The $1.3 billion project aims to streamline shipping between Peru and China, reducing transit times to 23 days and cutting logistics costs by 20%.

Equipped with four deep-water berths, the port can host ultra-large container ships with a capacity of 18,000 TEUs. It is set to become a vital hub, with an annual throughput capacity projected to reach 1.5 million TEUs. President Xi Jinping highlighted that the port will generate $4.5 billion annually for Peru and create over 8,000 jobs.

Strategically located, Chancay Port connects directly to Peru’s capital, Lima, via the Pan-American Highway. This infrastructure positions Peru as a trade gateway, facilitating faster export of goods like avocados and cranberries to Asia. Peru’s Transport Minister, Raul Perez Reyes, envisions the port becoming the “Singapore of Latin America.”

The project aligns with the growing trade demand between China and Latin America. Plans are underway to link the port to major cities and potentially other countries, further boosting trade in commodities like Brazilian soybeans and Colombian coffee.

Chancay Port is also South America’s first smart and green port, enhancing regional logistics and fostering industrial growth. Experts believe it will deepen China-Latin America ties, integrating the region into the Asia-Pacific’s economic framework.

Since 2013, the BRI has expanded significantly, with 22 Latin American countries signing cooperation agreements. Trade between China and the region hit $489 billion in 2023, underscoring the BRI’s role in driving economic development in the Global South.

The port’s opening, attended virtually by Presidents Xi Jinping and Dina Boluarte, symbolizes strengthened China-Peru relations. As Xi noted, the project represents a new chapter in connectivity between Asia and Latin America, enhancing global trade and regional integration.

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