In September, a group of Brazilian farmers and officials visited the Peruvian fishing town of Chancay to explore a new Chinese mega port being built on the Pacific coast. The $3.5 billion deep water port, set to start operations later this year, will provide China with direct access to South America’s resource-rich region and significantly reduce shipping time for some exporters. This port, majority-owned by Chinese state-owned firm Cosco Shipping, will be the first controlled by China in South America. The goal is to transform Chancay into a regional hub for copper exports from Peru and soy from western Brazil.
The port is part of China’s ‘Belt and Road’ initiative and signifies the increasing influence of China in Latin America. Construction at Chancay began in 2018 and the first phase is expected to be completed in November 2024. The project is seen as an opportunity for accelerating regional development and improving trade routes between South America and Asia.
There are talks between Peruvian and Brazilian officials in order to resolve overland transport challenges and potentially build an industrial hub near Chancay to process raw materials before shipping them to Asia. Plans to improve transport routes and infrastructure, including the Interoceanic Highway and a long-discussed rail link, are also being considered.
Ultimately, the port of Chancay is expected to benefit Brazilian businesses by providing a direct route to Asia, bypassing the Panama Canal. The completion of the port could have significant implications for trade and regional development.