A hub for transpacific trade… and organised crime?

A new Chinese-backed port on Peru’s Pacific coast is set to revolutionise intercontinental trade routes – but its deepwater capacity has fuelled US concerns over possible military use by Beijing.

From the cliffs above Chancay, you can see the port. The gentle roar of the surf blends with the rumble of giant blue automatic cranes loading and unloading container ships, and of construction machinery, as a titanic project takes shape nearby. 
Until now, South American shipping companies have had to route goods bound for China, such as cereals and mining products, through North American trade hubs such as Manzanillo in Mexico or Long Beach in California. But in 2011 the Peruvian mining company Volcan Compañia Minera (VCM) decided to build a megaport on the bay at Chancay, some 80km north of Lima. The plan was to link South America directly to Asia, especially China, the largest trading partner of every country in the region.

VCM chose this site because the water here is deep enough for container ships with a capacity of 18,000 TEU. and its location allows for a straight-line 17,000km route to Shanghai, so the voyage takes just 23 days – 12 days less than the usual routes. This represents a logistical cost saving of 20% which is reflected in the prices of goods transiting the port.

In 2019 VCM significantly expanded its original plans after teaming up with the Chinese state-owned port operator Cosco Shipping Ports (CSP), which is also the world’s fourth-largest shipping company and dominates container transport in the Pacific. CSP has a 60% stake in the joint venture formed to handle the project, Cosco Shipping Ports Chancay Perú (CSPCP). The new company invested $1.3bn in the first phase of construction, and the total value of the project is expected to reach $3.5bn. VCM itself borrowed $975m from Chinese banks and spun off its port business as an independent company, Inversiones Portuarias Chancay.

The port is one of the largest Latin American infrastructure projects China has invested in. When complete, it will accommodate 24,000-TUE ships and handle over three million containers per years. The first phase, covering 141 hectares, (…)

Full article: 1 666 words.

Romain Migus

Romain Migus is a journalist and founder of the Latin America and Caribbean news site Les 2 Rives (les2rives.info).

(1) The TEU (20-foot equivalent unit) is used to describe the capacity of container ships.

(2) ‘Rotas de Integração Sul-Americana’ (South-American integration routes), Brazilian Ministry of Planning, Budget and Management, 2 July 2024, www.gov.br/.

(4) ‘DP World Callao leading growth and sustainability in 2024’, 4 February 2025, thetransportdata.com/.

(6) R Evan Ellis, ‘Implicación estratégica del Puerto de Chancay operado por China’, (Strategic implications of the Chinese-operated port of Chancay), REDCAEM working paper series (WPS), no 42, November 2024, chinayamericalatina.com/.

(7) Eric Martin, ‘Trump ally urges duties on goods shipped via China’s Peru port’, 16 November 2024, www.bloomberg.com/.

(8) ‘Building Bridges – Port of Hueneme and Port of Paita sign MOU to establish a sister port relationship’, US Embassy in Peru, 15 November 2024, pe.usembassy.gov/.