If global trade were a vast chessboard, ports would be its crucial nodes. Now, a new piece is about to be placed on a strategic position in South America—Peru's Chancay Port. Developed by COSCO Shipping Ports Limited with trial operations scheduled to commence in late November 2024, this project marks not only a pivotal step in COSCO's Latin American expansion but also signals a qualitative leap in trade connectivity between China, Peru, and the broader region.
I. Chancay Port: A Strategic Pivot in China-Peru Collaboration
Located in Chancay Bay north of Lima, the port stands as a flagship project under the Belt and Road Initiative. Its first phase includes two multipurpose berths and two container berths, with a maximum depth of 17.8 meters capable of accommodating ultra-large container ships carrying up to 18,000 TEUs. The initial annual handling capacity of 1 million TEUs is projected to expand to 1.5 million TEUs, demonstrating the depth of infrastructure cooperation between the two nations.
II. Trial Operations: Laying Foundations for a Trade Expressway
During its trial phase, Chancay will launch direct shipping routes to Shanghai, handling two container vessels weekly. The port will initially process ships carrying 14,000 TEUs, with future capacity for 24,000-TEU megaships. This development promises to slash transit times between Latin America and China from 35 days to as few as 25 days, delivering significant cost savings for businesses.
III. Economic Impact: A Catalyst for Regional Growth
The port is projected to generate approximately $4.5 billion annually for Peru—equivalent to 1.8% of its GDP—while creating thousands of direct and indirect jobs. More significantly, Chancay may emerge as Latin America's new hub port and Pacific gateway, opening fresh pathways for regional economic integration with Asia-Pacific markets.
IV. Trade Transformation: Redefining Asia-Latin America Connectivity
As the first stop on a "maritime express route" into Latin America, Chancay will enable faster, cheaper exports of Peruvian agricultural products like cranberries and avocados to Asian markets. Complementary infrastructure projects—including rail and road networks linking the port to domestic production centers and neighboring countries—will facilitate expanded trade flows of Brazilian soybeans, Colombian coffee, and other regional commodities to Asia.
V. Challenges Ahead: Building a Sustainable Future
While promising, the project faces challenges including environmental sustainability, regional logistics integration, and geopolitical considerations. Nevertheless, with bilateral cooperation and COSCO's operational expertise, Chancay is positioned to evolve into an efficient, eco-conscious modern port that could redefine South America's maritime landscape for decades to come.