Shipping China opens strategic port in Peru

The first Chinese-controlled port in South America has been inaugurated in Peru, further strengthening trade ties between the two countries.

The new port of Chancay, located about 80 kilometers north of Lima on the Pacific coast, marks a significant milestone in relations between China and Peru. The opening was watched virtually by China's President Xi Jinping and Peru's head of state Dina Boluarte from the government palace in Lima. Boluarte described the inauguration as a "historic moment for Peru". However, Chinese control of the port is not without controversy.

The port is owned by the Chinese state-owned company Cosco Shipping Ports, which holds 60 percent of the shares, while the Peruvian company Volcan Compañía Minera owns the remaining 40 percent. A total investment of 3.5 billion US dollars is planned for the construction of the port facility. In the first phase of the expansion, it is expected that around one million containers can be handled annually.

New trade routes and economic impact

Cosco is planning to set up a direct shipping route to Shanghai, which will reduce the travel time to around 23 days. Previously, the shipping routes from Peru to China were mostly via Manzanillo in Mexico and Long Beach in the USA, which extended the crossing to around 40 days. In an article in the Peruvian newspaper "El Peruano", President Xi emphasized that the port would promote economic development between China and Latin America.

Growing trade relations and investments

Since the free trade agreement of 2009, the volume of trade between China and Peru has doubled to 33 billion US dollars. In the last ten years, China has invested around 24 billion dollars in mining and energy projects in Peru. Former US diplomat Eric Farnsworth expressed concerns about China's growing influence in the region and described this as a "real problem".

Critical voices and legal framework

The Peruvian Congress has passed a law guaranteeing Cosco exclusive use of the port. Argentine logistics expert Agustín Barletti commented in the newspaper "El Cronista" that this shows that China is not building a port for the Peruvians, but a Chinese port in Peru, which is a significant difference.

SDA