China’s President Xi Jinping inaugurated the Chancay Port in Peru on November 14, a key project under the Belt and Road Initiative (BRI) demonstrating Beijing’s expanding presence in Latin America. The $3.6 billion deep-sea port, funded primarily by China and operated by the China Ocean Shipping Company (COSCO), is designed to transform trade between South America and Asia while bypassing North America entirely. COSCO holds a 60% stake in the project.
Xi described the port as a “new land-sea corridor between China and Latin America,” highlighting its strategic importance for Beijing’s global trade ambitions. Located 78 kilometers north of Lima, Chancay Port is expected to reduce shipping times between Latin America and Asia by 10 days, cut logistics costs by over 20%, and generate $4.5 billion annually for Peru—equivalent to 1.8% of the country’s GDP.
The facility’s advanced infrastructure includes four dock berths capable of accommodating ultra-large container ships with a capacity of up to 18,000 TEUs (Twenty-Foot Equivalent Units), positioning it as a key logistics hub for exports such as copper, blueberries, soybeans, and lithium. The port is expected to play a significant role in supporting the lithium triangle countries—Bolivia, Chile, and Argentina—which are crucial suppliers for the electric vehicle industry.
Peruvian President Dina Bolaurte called the project transformative, stating, “With this mega project, we are starting a transformation that will consolidate the country as a world-class logistic, technological, and industrial center.” The port will directly connect Peru with China in just 23 days of sailing time, further deepening trade ties.
However, the project has raised alarms in U.S. policymaking circles. Critics have cited concerns about the growing geopolitical and economic influence of China in a region traditionally dominated by the United States. “This will further make it easier for the Chinese to extract all of these resources from the region,” Army General Laura Richardson told the Wall Street Journal.
While U.S. officials call for greater American investment in South America, Peruvian Foreign Minister Javier González-Olaechea challenged the U.S. to increase its presence in the region, remarking, “It’s like a very important friend who spends little time with us.”
With operations set to begin in early 2025, Chancay Port is expected to expand its capacity to 15 berths and 1.5 million TEUs annually in the long term.