On Thursday, November 14, the President of the People's Republic of China, Xi Jinping , visited Peru. The reason was the official inauguration, together with the President, Dina Boluarte , of the mega port of Chancay.
This event undoubtedly “constitutes a milestone in cooperation between China and Peru within the framework of the Belt and Road Initiative,” as highlighted by the People's Daily in its digital edition.
Located about 70 kilometers north of Lima on the Pacific coast and directly connected to the Pan-American Highway, the new deepwater port is set to become a key logistics hub between Latin America and Asia. The project is one of the most significant Chinese investment projects in Latin America and is mainly controlled by state-owned company COSCO Shipping , one of the largest port operators in the world.
The Chancay port was proposed as a flagship project of the Belt and Road Initiative . Its massive port infrastructure will improve trade efficiency between Peru and Asia, “reducing shipping time to China to 23 days and logistics costs by at least 20 percent,” said the People’s Daily.
With a draft depth of between 16 and 18 metres , the new port will handle more than one million Twenty-foot Equivalent Units (TEUs) per year . The TEU, or Twenty-foot Equivalent Unit, is a general unit of cargo capacity, based on the volume of a standard-sized 20-foot-long (6.1-metre) container.
It is not only a good deepwater port, but also the first smart and environmentally friendly one in South America.
The port has four berths , two of which are for bulk cargo and the remaining ones for containers . It can accommodate large container ships with a capacity of 18,000 TEU.
In addition, the annual bulk cargo handling capacity can reach 6 million tons .
What are the objections and warnings of the United States?
Recently, the Infobae newspaper reported that the advisor to the transition team of the elected and future president Donald Trump , Mauricio Claver-Carone , proposed applying a 60% tariff on products from China and other Latin American countries that pass through the port of Chancay . This suggestion is based on concerns that the port, which is being developed and controlled by the Asian giant, could become an entry point for low-cost products from China, which would harm US trade.
But Yankee concerns have not only been economic, but also security-related.
As we have discussed on several occasions in Agenda Malvinas, General Laura Richardson , former head of the Southern Command, stated in an interview with the Financial Times that the port could house, in the future, warships of the Chinese Navy, which would make the facility a strategic point within what she calls the “Chinese Military Expansion Plan” in the region.
Richardson , speaking at the Aspen Security Forum last week, called on his country's leaders to devise a "Marshall Plan" for Latin America that would replicate the one implemented in Europe after World War II, which is much needed to neutralize Chinese and Russian influence in the region, the MercoPress website noted.
“If it’s about doing something good in the hemisphere, then I’m all for it. But it makes me a little suspicious when there’s a lot of investment in critical infrastructure — a lot of critical infrastructure in countries in this region — deepwater ports, 5G, cybersecurity, energy, space...” said Richardson , who is rumored to be a possible Latin American affairs officer for the future Trump administration. “I’m concerned about the dual-use nature of this. These are state-owned companies of a communist government, and I’m concerned that they will quickly become military applications,” said the former head of the Southern Command.
It is worth noting that the Aspen Security Forum is the leading conference on national security and foreign policy in the United States.
What is the future goal of the port?
The impact on trade efficiency is expected to be profound, as with the Chancay port, "we will have direct routes to Asia, especially China, which will reduce shipping times by 10, 15 or even 20 days, depending on the route," said Peru's Minister of Transport and Communications, Raul Perez-Reyes. recently to the press. Currently, shipping between Peru and Asia can take up to 40 days.
Officials and experts see the mega port as a step toward redefining South America's role in global trade, making it easier for Peru and neighboring countries to export products across the Pacific.
This new port will encourage trade between Peru, Chile, Argentina, Brazil and other Latin American countries with Asian countries, including China, said the president of the Peruvian Congress, Eduardo Salhuana , adding that it promises economic growth for the agricultural, mining and manufacturing industries of Latin America.
The Brazilian government has already shown great interest in the mega port , considering it a vital link to Asian markets .
“The Chancay Port, which provides a new option for maritime transport across the Pacific, will open a door for the entire Latin American region to be included in the Asia-Pacific economic integration. In addition, the port's reach extends far beyond China and Latin America; countries on both sides of the Pacific can take advantage of this maritime route to facilitate global trade, which means more vitality for the world economy and more benefits for all ,” said Zhang Tuo , former Chinese ambassador to Cuba and vice president of the China-Latin America Friendship Association.
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