China Inaugurates $1.3 Billion Megaport in Peru as Part of Expanding Latin American Influence

Chinese President Xi Jinping kicked off a weeklong diplomatic tour of South America on Thursday with the inauguration of the Chancay Port, a massive deep-water port located 78 kilometers north of Peru’s capital, Lima. The $1.3 billion investment was a part of China's ambitious Belt and Road Initiative (BRI) that marks a significant step in China's efforts to expand its trade ties and geopolitical influence in Latin America.

Xi, who participated in the ceremony via video link, was joined by Peruvian President Dina Boluarte. The inauguration of the 15-berth, deep-water Chancay port comes at a time of growing demand for Latin American agricultural goods, minerals, and other resources from China. This new infrastructure is poised to strengthen trade ties between the two nations and facilitate more efficient transport of goods, particularly agricultural exports like Peruvian fruits and Brazilian commodities.

“China is willing to work with Peru to use the Chancay port as a starting point to forge a new maritime-land corridor between China and Latin America,” Xi said during the virtual ceremony. “This will connect the Great Inca Trail,” he added, referencing the ancient Incan network of roads that spanned the Andes, which he suggested could be revived in modern times through improved trade infrastructure.

The Chancay port is a key part of China's broader Belt and Road Initiative, which aims to create a global network of trade routes spanning Asia, Africa, and Latin America. According to Xi, the Chancay project will generate $4.5 billion in annual revenue, create over 8,000 direct jobs, and reduce logistics costs between Peru and China by as much as 20%. The port, which was built by **Cosco Shipping Ports**, a Chinese state-owned company, is also seen as a critical link in the transportation of goods across the Pacific Ocean to China.

“The Chancay project is a symbol of the growing and deepening economic partnership between China and Peru,” said Mario Ocharan, the director of the Chancay Chamber of Commerce. He emphasized that the port would be pivotal for shipping Peruvian exports like fruit to China, with the first vessel set to depart next week carrying Peruvian fruit to the Chinese market.

The strategic location of Chancay — at the crossroads of South American trade routes — also aligns with China’s long-term vision to strengthen its presence in Latin America and diversify its trade routes. As part of its broader strategy, China plans to invest billions more in the port’s infrastructure, positioning it as a central shipping hub between Asia and South America.