China extends reach: Major port opens in Peru
China's leader, Xi Jinping, virtually inaugurated the large Chancay Port near Lima on Thursday. Built, financed, and controlled by a state-owned Chinese company, the port aims to streamline the direct transportation of goods between Asia and South America. China's economic influence in Peru is growing.
Xi participated in the port's inauguration ceremony on Thursday through a video link from Lima alongside the President of Peru, Dina Boluarte. Boluarte stated that this project marks the beginning of Peru's transformation into a world-class logistics, technology, and industrial hub.
The German agency dpa emphasizes that this is the first China-controlled port in South America.
Xi declared that the port is part of the "21st Century Maritime Silk Road," and Beijing is ready to cooperate with Lima to create a "new maritime-land corridor between China and Latin America."
In an article published in the official newspaper "El Peruano," Xi argued that the Chancay Port will generate operations of about 4.5 billion USD (6.3 billion CAD) annually, create over 8,000 direct jobs, and reduce transportation costs on the Peru-China route by 20%.
According to the Spanish-language CNN station, it will be the largest deep-water port on the South American Pacific coast and may revolutionize trade on the continent. Peruvian officials estimated that it would reduce the transportation time of goods to and from China by about 10 days or even by 20 days on some routes.
Chancay Port is located about 80 kilometres north of Lima. It is 60% owned by the state-owned Chinese company Cosco Shipping and will be controlled by it. In the first phase of the project, the Chinese invested 1.3 billion USD (1.8 billion CAD), and the project's total cost is estimated at over 3.5 billion USD (4.9 billion CAD).
The port is expected to facilitate the transportation of copper or fruits from Peru to China and goods from other countries, particularly soybeans and iron ore from Brazil.
Commentators see the port's opening as part of the increasing rivalry between China and the United States, also occurring in the resource-rich region traditionally regarded as a sphere of influence by Washington.
China wins the battle for influence in South America
Gen. Laura Richardson, former head of the US Southern Command, warned in November that the Chancay Port could be used by the Chinese navy and for intelligence gathering.
Media and analysts simultaneously emphasize that the growth of China's economic influence in Peru is part of a larger trend visible across the continent. In recent decades, China has surpassed the USA on the list of the largest trading partners of most prominent South American countries, including Brazil, Argentina, and Chile.
