Chancay Port, Peru

Overview

• Objective: Transform Peru into a key commercial and port hub, bridging trade between South America and Asia.
• Ownership:
  • Cosco Shipping, a Chinese state-owned enterprise, owns 60% of the project.
  • Marks China’s first controlled port in South America.
• Belt and Road Initiative (BRI): Integral to China’s investments in Latin America, enhancing regional trade influence.

Significance of the Project

1. Resource Access for China:
   • Provides direct access to South America’s resource-rich zones.
   • China is South America’s leading trade partner, surpassing the U.S. in trade volume.
2. Regional Export Hub:
   • Will serve as a crucial point for exporting copper from Peru and soy from western Brazil.
   • Streamlines logistics by avoiding traditional routes like the Panama Canal or Atlantic pathways.
3. Strengthened Bilateral Relations:
   • Deepens trade ties between Peru and China.
   • China leads bilateral trade with a surplus exceeding $10 billion.

About Peru

Geographical and Economic Facts

• Location: Western South America, entirely in the Southern Hemisphere.
• Borders:
  • North: Ecuador and Colombia.
  • East: Brazil.
  • Southeast: Bolivia.
  • South: Chile.
  • West/Southwest: Pacific Ocean.

Economy

• Global Standing:
  • 2nd-largest copper producer in the world.
  • Other key minerals: Gold and Zinc.
• Main Imports:
  • Petroleum oils, transmitter equipment, and automobiles.
• Key Import Partners:
  • China: 23.3%.
  • United States: 21.3%.
  • Brazil: 5.6%.

Geopolitical Implications

• China’s Strategic Growth:
  • Expands trade and economic influence in South America through Chancay Port.
  • Reinforces its Belt and Road Initiative’s foothold in the Western Hemisphere.
• South America-Asia Connectivity:
  • Positions Chancay as a pivotal link in global trade, reducing dependency on U.S.-controlled routes like the Panama Canal.