China's port investment in Peru

26/06/2024

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China is building a mega Port Terminal in the Peruvian city of Chancay. Chinese firm Cosco owns 60% stake in the future port, which is to be used as a trade hub in South America. The total cost of the facility, which promises to shorten shipping times for shipments of any goods between Beijing and the Pacific, is expected to be around $3.5 billion, financed entirely by Chinese bank loans. China has rapidly increased its trade and investment presence in the territory and is currently the major export and import partner for most South American countries. 

Beijing has already invested in about 100 ports in more than 60 countries worldwide. Latin America may become a new region of geopolitical rivalry between the US and China, with Peru as a regional gateway for China. The port infrastructure is part of a broader strategy promoted by Beijing with the aim of gaining influence in a region that is crucial for the supply of raw materials such as lithium, copper, tin, graphite and agri-food products. The Port Terminal in Chancay is the China's most ambitious port project in Latin America, designed to facilitate trade between Latin America and Asia. The terminal will offer a direct route to China with a travel time reduction for ships of 10 days. COSCO officials say ships traveling from South America to China normally take more than 45 days with stops in Central America, Mexico or the United States.