China will invest heavily in ‘megaport’ that promises to connect continents

The new Chancay megaport, located 80 kilometers north of Lima, Peru, will be officially opened on November 14th.

The ceremony will be attended by Chinese President Xi Jinping and Peruvian President Dina Boluarte during the Asia-Pacific Economic Cooperation Forum (APEC) summit.

This project is a milestone in China’s expansion in Latin America and is part of the “Belt and Road” initiative, which aims to improve global infrastructure and connect continents in a kind of “new silk road”.

Cosco Shipping Ports, a subsidiary of China Ocean Shipping Company (COSCO), manages the port and holds a 30-year concession.

The deep-water port, with capacity to receive ships of up to 24 thousand containers, began construction in 2021. With an initial investment of 1.3 billion dollars, the site currently has four berths, and the forecast is that at the end expansions, reaching 15 docks and a total investment of 3.5 billion dollars.

According to Cosco Shipping Ports, it is estimated that one million containers will pass through the megaport in the first year of operation, consolidating the region as a key logistics center for South American trade.

The choice of Chancay as the location for the megaport was not random. In 2019, the Chinese group acquired 60% of the Peruvian company responsible for the port, aiming to take advantage of its strategic position in the center of South America and the relevance of Peruvian agro-industrial production.

Professor Óscar Vidarte, a specialist in International Relations at the Catholic University of Peru, commented on the inclusion of Latin America in the “Belt and Road” a few years after the launch of the initiative.

According to him, this is part of China’s strategy to consolidate its position as a world power, strengthening its global presence through economic and commercial projects.

Peruvian Transport Minister Raúl Pérez highlighted that the megaport will significantly reduce transport costs for countries such as Peru, Chile, Colombia, Ecuador and Brazil, which currently depend on ports in Mexico and the United States for trade with Asia. .

With this opening, Chancay becomes the first Chinese port in South America, reinforcing the region’s aspirations to become an equivalent to Singapore in Latin America.

With information from UOL