BEIJING, Nov. 16, 2024 /PRNewswire/ — The phrase “From Chancay to Shanghai” has emerged as a resonant slogan in Peru, symbolizing a transformative moment in regional trade, as the Chancay Port—an emblematic project of China’s ambitious Belt and Road Initiative (BRI)—celebrated its grand opening ceremony on Thursday.
The monumental $1.3 billion project is poised to revolutionize trade dynamics by catering to the world’s largest cargo vessels, significantly slashing shipping times between Peru and China. The completion of the first phase is set to reduce maritime transit from Peru to China to a swift 23 days, effectively decreasing logistics costs by a remarkable 20 percent.
This cutting-edge port boasts four operational berths with a substantial depth of 17.8 meters, engineered to accommodate ultra-large container ships capable of carrying 18,000 twenty-foot equivalent units (TEUs). The port’s initial designed throughput capacity stands at an impressive one million TEUs per year, with projections to scale up to 1.5 million TEUs in the long term, positioning Chancay as a crucial trade nexus between Latin America and Asia.
Chinese President Xi Jinping and his Peruvian counterpart Dina Boluarte jointly participated in the inaugural festivities of Chancay Port through a live video link on Thursday, showcasing the significance of this partnership.
During the ceremony, President Xi proclaimed, “From Chancay to Shanghai, what we are witnessing is not only the root and blossom of the Belt and Road Initiative in Peru, but also the birth of a new gateway that connects land and sea, Asia and Latin America.”
Earlier on Thursday, Xi arrived in Peru for a state visit and to attend the 31st APEC Economic Leaders’ Meeting, marking his sixth engagement with the continent since 2013.
Transforming regional trade dynamics
In a bid to establish itself as a pivotal player in international logistics, Xi noted that the Chancay Port has been developed not only as a functional deep-water port, but also as South America’s first smart and green port.
Strategically positioned as Peru’s gateway to the Pacific, the port features a tunnel connecting it directly to the Pan-American Highway, thereby facilitating immediate access to the nation’s capital, Lima. This port represents the inaugural “maritime expressway” into Latin America, promising expedited and cost-efficient transport of key Peruvian exports, including cranberries and avocados, to burgeoning Asian markets.
“Our goal is to become the Singapore of Latin America so that all cargo headed to Asia can transit through here,” highlighted Peruvian Transport Minister Raul Perez Reyes, emphasizing Peru as the preferred departure point for countries like Brazil, Venezuela, Bolivia, Paraguay, and Argentina.
The construction of Chancay Port aligns seamlessly with the escalating trade demands between China and Latin America.
Additionally, Peru is laying plans to develop an extensive railway and highway network that will link Chancay Port with major urban centers across the country. This transport network could also extend connectivity to regional countries, paving the way for efficient exports of Brazilian soybeans, iron ore, frozen meat, Colombian coffee, and avocados to Asian markets via this newly established trade route.
“The Chancay Port will help Peru improve shipping efficiency and deepen trade cooperation with Asia,” said David Gamero, deputy manager at the Chancay megaport project. He underscored that beyond the direct economic advantages, the monumental port would stimulate the development of Latin America’s logistics value chain and advance technological innovations, culminating in a significant “multiplier effect.”
President Xi, referring to Peru as “China’s neighbor across the Pacific,” recited an ancient Chinese proverb highlighting the enduring bonds between China and Latin American nations: “True friends always feel close to each other no matter the distance between them.”
Once operational, Chancay Port is expected to seamlessly integrate the entire Latin American region into the vibrant economic framework of the Asia-Pacific, fostering enhanced connectivity within and beyond the continent.
Intensifying China-Latin America cooperation
The Belt and Road Initiative, launched by China in 2013, expanded its horizons to encompass Latin America and the Caribbean as of 2017.
As of 2023, a total of 22 countries in the region have signed cooperation agreements with China under the BRI framework. Noteworthy projects include Brazil’s Belo Monte Hydropower Plant ultra-high-voltage transmission line and Argentina’s Belgrano Cargas railway, among others.
Since 2012, China has risen to become Latin America’s second-largest trading partner. By 2023, trade volume between China and Latin American nations surpassed a staggering $489 billion.
Experts assert that Chinese investments and technical assistance are catalyzing economic development in Latin American countries and have become a crucial driver for the progress of the Global South. They anticipate that Xi’s presence at APEC will inject positive momentum into regional integration and enhance economic collaboration.
Rafael del Campo Quintana, vice president of the Peruvian Exporters Association, emphasized that APEC serves not only as a vital platform for regional trade promotion but also offers developing nations, such as Peru, invaluable opportunities for deeper integration into the global economy.
SOURCE CGTN
How will the advancements in technology at Chancay Port contribute to its designation as a “smart and green” port?
**Interview with David Gamero, Deputy Manager of the Chancay Megaport Project**
**Interviewer:** Thank you for joining us, David. Exciting news around the grand opening of Chancay Port! Can you tell us what this project means for Peru and its position in global trade?
**David Gamero:** Thank you for having me. The Chancay Port is a transformative project for Peru and Latin America as a whole. It positions us as a critical gateway between Asia and the region, significantly enhancing our trade capabilities. With a capacity to handle one million TEUs annually and a plan to expand that to 1.5 million, Chancay will streamline export processes for perishable goods like cranberries and avocados, making our trade more efficient and cost-effective.
**Interviewer:** You mentioned the port will reduce maritime transit time to just 23 days. How significant is that in the context of global shipping?
**David Gamero:** It’s incredibly significant. Reducing the shipping time by nearly a third means that we can respond to market demands much quicker, which is crucial for perishable goods. This enhancement not only lowers shipping costs by about 20% but also allows us to tap into growing markets in Asia. Our goal is to position Peru as the preferred departure point for neighbors like Brazil and Argentina.
**Interviewer:** The port is being marketed as South America’s first smart and green port. Can you elaborate on what that entails?
**David Gamero:** Certainly. The smart features incorporate advanced technology for efficient cargo handling and monitoring, enhancing operational efficiency while minimizing environmental impact. As for the green aspect, we’re implementing sustainable practices throughout the construction and operational phases to ensure that the port meets ecological standards and benefits the surrounding communities.
**Interviewer:** President Xi referred to the port as a “new gateway” connecting land and sea. What does this mean for future infrastructure development in Peru?
**David Gamero:** The Chancay Port will be the linchpin for a broader infrastructure network, including extensive rail and highway links that will connect it to major urban centers across Peru and even to neighboring countries. This develops what we call a ’maritime expressway’ for efficient transport of goods, reinforcing our logistics framework in South America.
**Interviewer:** How do you see the relationship between China and Peru evolving with such a monumental project?
**David Gamero:** The Chancay Port is a representation of deepening economic ties between China and Peru. It’s not just about trade; it’s about collaboration and shared growth. As we become more integrated into the Asian markets, we foresee not only economic benefits but also a strengthening of diplomatic and cultural relationships.
**Interviewer:** what is your vision for Chancay Port in the coming years?
**David Gamero:** Our vision is to make Chancay the “Singapore of Latin America,” fostering a vibrant trade ecosystem that enhances not only Peru’s economy but the entire region’s logistics capabilities. This will stimulate local economies and introduce significant technological advancements to the logistics sector, creating a ripple effect of growth.
**Interviewer:** Thank you, David, for your insights! It sounds like Chancay Port is set to make a huge impact on both regional and global trade.
**David Gamero:** Thank you! We’re excited about the future and look forward to seeing the positive changes it will bring.
