Peru megaport to open new Pacific trade route to China. Will it be a win for all?
- Chinese-backed port in Peru aims to offer a faster, alternative route to China from South America
- Port of Chancay is part of China’s Belt and Road Initiative, which was launched a decade ago
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Gateway to Asia: China builds port in Peru for faster transport of goods to and from South America
A US$3 billion megaport in Peru seen as a new gateway to Asia is on track to open four of its 11 berths at the end of 2024, offering a faster Pacific Ocean route to China for sea cargo from this part of Latin America.
The project broke ground in 2011 in the small city of Chancay about 72km (44 miles) north of Lima, and with major help from Chinese investment.
It was designed to make Peru a global shipping hub, competing with Chile and Ecuador as a link between South America and East Asia.
Normally, the journey through the Panama Canal or from Cabo de Hornos in Chile takes up to 45 days. The Chancay megaport will cut that time down to 30 days by connecting land and sea routes from as far as the Atlantic coast to across the Pacific.
It appears to be an all around positive deal for both Peru and the primary investor, China, but some experts are focused on the economic long-term impacts of the mega infrastructure project, primarily which country will benefit most from it.
Lessons can be learned from other countries that have struck a port-building deal with China. Sri Lanka’s Hambantota port is a key example, which relied on Chinese loans in 2017 to build it.