China will strengthen its position on the Latin American continent with the opening of Phase 1 of the Chancay Port Project, which is located 70 km north of Lima.
The $3.4 billion project, led by China’s Cosco Shipping Company (a state-owned company), is set to transform the trade routes from South America to Asia.
Chancay Port, which will house administrative offices, logistic services and 15 docks as well as a 2-kilometer tunnel for freight, is a strategic project aligned to China’s Belt and Road Initiative.
Opening of the port coincides with Chinese president Xi Jinping’s visit to Lima. This shows strong ties and China’s growing presence in Latin American markets.
Chancay port project
Chancay Port Project, completed in eight years, was faced with many challenges including local opposition and environmental concerns.
Despite the initial promise of creating jobs, some critics point out that in past Chinese investment to the region they have sometimes preferred importing workers over hiring locals.
Raul Perez-Reyes, Peru’s Minister for Communications and Transports, highlighted the strategic importance of this port. He said, “With this Port, we not only will increase our cargo capability but also improve our competitiveness at a global level.”
The port is expected to generate 7,500 jobs directly and indirectly, but concerns remain about unfair employment practices.
The project will help to import critical resources such as copper and lithium, from South America, and increase agricultural exports to China.
Port’s influence extends far beyond Peru. It could change regional trade dynamics, and encourage neighboring countries into making similar investments.
Chancay has been expected to contribute more economically as the demand for goods in China and Asia grows.
Chancay Port is expected to reduce transit time and shipping costs between South America, Asia and South America.
To gain the public’s trust, however, it is important that the Peruvian Government addresses local concerns about employment and maintains transparency. To maximize the benefits of this port for Peruvians, it is important to ensure that jobs are distributed and monitored in an equitable manner.
China’s strategic position in the region is growing as it strengthens its ties with nations rich in minerals, such as Chile, Brazil and Peru. It also maintains strong trade relations with other countries, including Argentina and Venezuela.
This article China opens Chancay Port in Peru to boost influence in Latin America first appeared on The ICD
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