CGTN: From Chancay to Shanghai: Transforming Latin America's trade future

BEIJING,Nov. 16, 2024/PRNewswire/ --"From Chancay toShanghai"has become a popular slogan inPeruas the Chancay Port, a flagship project of the China-proposed Belt and Road Initiative (BRI), held a grand opening ceremony on Thursday.

The$1.3 billionmega project is set to revolutionize regional trade by accommodating the world's largest cargo ships and significantly reducing shipping times. The first phase of the project will reduce the sea shipping time fromPeruto China to 23 days, cutting logistics costs by at least 20 percent.

The new port has four berths with a maximum depth of 17.8 meters, capable of hosting ultra-large container ships with a capacity of 18,000 twenty-foot equivalent units (TEUs). The port's designed annual throughput capacity is one million TEUs in the near term and 1.5 million TEUs in the long term, positioning it as a key hub for trade betweenLatin AmericaandAsia.

Chinese President Xi said in his signed article, published Thursday in the Peruvian media outlet El Peruano, that the Chancay Port project is expected to generate$4.5 billionin yearly revenues forPeruand create over 8,000 direct jobs.

Xi and his Peruvian counterpartDina Boluarteattended the opening ceremony of Chancay Port via video link on Thursday.

"From Chancay toShanghai, what we are witnessing is not only the root and blossom of the Belt and Road Initiative inPeru, but also the birth of a new gateway that connects land and sea,AsiaandLatin America,"said President Xi when addressing the opening ceremony.

Xi flew in earlier Thursday to pay a state visit toPeruand attend the 31st APEC Economic Leaders'Meeting. This is his sixth visit to the continent since 2013.

Transforming regional trade dynamics

The Chancay Port is not only a good deep-water port, but also the first smart port and green port inSouth America, Xi said.

Strategically located asPeru'sgateway to the Pacific, the port is connected to the Pan-American Highway via a tunnel, providing direct access toPeru'scapitalLima. As the first"maritime expressway"intoLatin America, it will enable faster and more cost-efficient transport of Peruvian exports, such as cranberries and avocados, to Asian markets.

"Our goal is to become theSingaporeofLatin America, so that port cargo passes through here when going toAsia. When someone fromBrazil,Venezuela,Bolivia,ParaguayandArgentinawants to go toAsia, they should think ofPeruas a point of departure,"Peruvian Transport MinisterRaul Perez Reyestold reporters last month.

The construction of Chancay Port aligns perfectly with the growing demands for trade between China andLatin America.

Additionally,Peruhas initiated plans to develop a railway and highway network connecting Chancay Port to major cities across the country, with potential future links to transportation networks in other regional countries, and could support the efficient export of Brazilian soybeans, iron ore, frozen meat, Colombian coffee, avocados and other goods toAsiavia this new trade route.

"The Chancay Port will helpPeruimprove shipping efficiency and deepen trade cooperation withAsia,"saidDavid Gamero, a deputy manager at the Chancay megaport project. He added that beyond direct economic benefits, the massive port will also drive the development ofLatin America'slogistics value chain and advance technological and industrial growth, creating a"multiplier effect."

Xi once referred toPeruas"China's neighbor across the Pacific,"and cited an ancient Chinese poem to characterize China's relations with countries inLatin Americaand theCaribbean:"True friends always feel close to each other no matter the distance between them."

Once the Chancay Port comes into operation, it will be able to integrate the entire Latin American region into the dynamic economic framework of theAsia-Pacific, greatly bolstering connectivity within and beyond the continent.

IntensifyingChina-Latin Americacooperation

The BRI, proposed by China in 2013, incorporatedLatin Americaand theCaribbeanregion in 2017.

As of 2023, 22 countries in the region have signed BRI cooperation documents with China, according to the report by a steering group for the Belt and Road Initiative. Notable projects include the Belo Monte Hydropower Plant ultra-high-voltage transmission line inBrazil,Argentina'sBelgrano Cargas railway, among others.

Additionally, since 2012, China has been the second-largest trading partner ofLatin America. In 2023, the total trade volume between China and Latin American countries exceeded$489 billion.

Experts say China's investment and technical support are helping Latin American countries accelerate their economic development and have become an important driving force for the development of the Global South. They also voiced expectation for Xi's attendance at APEC to inject positive momentum into regional integration and economic cooperation.

Rafael delCampo Quintana, vice president of the Peruvian Exporters Association, said that APEC is not only an important platform for promoting regional trade and economic cooperation but also provides developing countries, includingPeru, with opportunities to deeply integrate into the global economy.

https://news.cgtn.com/news/2024-11-14/Peru-s-Chancay-megaport-poised-to-reshape-trade-in-the-Pacific-1yveJbUsORy/p.html 

SOURCE CGTN