CGTN: From Changkai to Shanghai: Transforming the Future of Latin American Trade
BEIJING , Nov. 18, 2024 / — The slogan “From Chancay to Shanghai” gained popularity in Peru with the inauguration ceremony on Thursday of the Chancay Port, a flagship project of China’s proposed Belt and Road Initiative (BRI).
The $1.3 billion mega-project is set to revolutionize regional trade by accommodating the world’s largest cargo ships and dramatically reducing shipping times. The first phase of the project will cut sea freight times from Peru to China to 23 days, cutting logistics costs by at least 20%.
The new port has four berths with a maximum depth of 17.8 meters, which can accommodate ultra-large container ships with a capacity of 18,000 TEU (twenty-foot equivalent units). The port has a projected annual throughput of 1 million TEU in the short term and 1.5 million TEU in the long term, making it a key trade hub between Latin America and Asia.
Chinese President Xi Jinping said in an article published Thursday in Peruvian newspaper El Peruano that the Chancay port project is expected to generate US$4.5 billion in annual revenue for Peru and create more than 8,000 direct jobs.
Xi Jinping and his Peruvian counterpart Dina Boluarte attended the opening ceremony of the Chancay port via video link on Thursday.
“From Chancay to Shanghai, we are witnessing not only the birth and blossoming of the Belt and Road Initiative in Peru, but also the birth of a new gateway connecting land and sea, Asia and Latin America,” President Xi said at the opening ceremony.
Xi flew to Peru earlier Thursday for a state visit and to attend the 31st APEC Economic Leaders’ Meeting, his sixth visit to the continent since 2013.
Transforming the Dynamics of Regional Trade
According to President Xi, Chancai Port is not only a good deep-water port, but also the first smart port and green port in South America.
Strategically located as Peru’s gateway to the Pacific Ocean, the port is connected by tunnel to the Pan-American Highway, providing direct access to Peru’s capital, Lima. As the first “sea fast lane” from Latin America, it will allow faster and more economical transportation of Peruvian exports such as cranberries and avocados to Asian markets.
“Our goal is to become the Singapore of Latin America, so that port cargo passes through here on its way to Asia. When someone wants to go from Brazil, Venezuela, Bolivia, Paraguay or Argentina to Asia, they should think of Peru as a starting point,” Peruvian Transport Minister Raul Perez Reyes told reporters last month .
The construction of Chancay Port fits perfectly with the growing needs of trade between China and Latin America.
In addition, Peruvian leaders have initiated plans to develop a rail and road network connecting the port of Chancay to major cities across the country, with potential future connections to the transportation networks of other countries in the region that could support the efficient export of Brazilian soybeans, iron ore, frozen meat, Colombian coffee, avocados and other goods to Asia via this new trade route.
“The Chancay Port will help Peru improve shipping efficiency and deepen trade cooperation with Asia,” said David Gamero , deputy project manager for the Chancay Megaport project. He added that in addition to the direct economic benefits, the megaport will stimulate the development of the logistics value chain in Latin America, as well as promote technological and industrial growth, creating a “multiplier effect.”
President Xi once called Peru “China’s neighbor across the Pacific Ocean” and quoted an ancient Chinese poem to describe China’s relations with Latin American and Caribbean countries: “True friends always feel close to each other, no matter the distance between them.”
Once operational, the Chancay Port will be able to integrate the entire Latin American region into the dynamic economic structure of the Asia-Pacific region, significantly strengthening ties within the continent and beyond.
Intensifying cooperation between China and Latin America
The Belt and Road Initiative, proposed by China in 2013, included the Latin America and Caribbean region in 2017.
As of 2023, 22 countries in the region have signed cooperation documents with China under the Belt and Road Initiative, according to a report by the Belt and Road Initiative Leading Group. Notable projects include the Belo Monte ultra-high-voltage transmission line in Brazil, the Belgrano Cargas railway in Argentina, etc.
In addition, China has been Latin America’s second largest trading partner since 2012. In 2023, total trade between China and Latin American countries exceeded US$489 billion.
Experts say China’s investment and technical support have helped Latin American countries accelerate their economic development and have become an important driving force for the development of the Global South. They also expressed hope that Xi Jinping’s participation in the APEC summit will give positive impetus to regional integration and economic cooperation.
Rafael del Campo Quintana, Vice President of the Peruvian Exporters Association , noted that APEC is not only an important platform for developing regional trade and economic cooperation, but also opens up opportunities for developing countries, including Peru, to deeply integrate into the global economy.
