Peru's Chancay Port Set to Launch as Major Trade Hub

Peru's highly anticipated Chancay port, a massive infrastructure project backed by China, is poised to become a pivotal hub for trade between South America and Asia. The port is operated by Hong Kong-based Cosco Shipping, and it will begin limited operations in late NovemberIt is ready to gradually increase operations to enable regular trans-Pacific cargo shipments.

Chancay aims to become the gateway for goods from neighbouring countries, with cabotage routes planned from Colombia, Ecuador, and Chile. These smaller shipments will be consolidated at Chancay and then transported to Asia on vessels capable of carrying up to 14,000 containers initially. In future, this capacity will be increased to 24,000 containers.

Cosco Shipping Ports holds a 60% stake in the Chancay port project, with the remaining 40% owned by Volcan company Minera, a Peruvian mining firm controlled by the global commodities giant Glencore. Once fully operational, Chancay is anticipated to transform trade dynamics in the region by enhancing South America's access to Asian markets. Its strategic location, along with its ambitious capacity, has the potential to position it as a significant transshipment hub and a competitor to larger ports along the Pacific coast.

This new infrastructure will greatly decrease the time and cost associated with shipping goods between Peru and China. Ultra Large Container ships (ULCS) with a capacity of 18,000 TEU will be able to dock at the port for the first time, reducing the transfer time from 35 to 23 days. This translates to a 30% reduction in transportation costs.

Carlos Tejada, General Manager of Cosco Shipping, announced that the port will initiate its "test conditioning" phase in late November, running until May. During this phase, Chancay will begin handling actual cargo with two direct container ships per week to Shanghai.

"While this is just the beginning, Chancay's potential will expand based on demand, possibly adding other Asian markets to its routes," Tejada said during a Peruvian-Chinese business forum on October 19.

China's involvement in Chancay not only highlights the strengthening economic ties between South America and Asia but also emphasizes Beijing's increasing influence in global infrastructure and trade.

About Cosco –

Cosco Shipping Lines (North America) and its subsidiary, Cosco Agencies (Los Angeles), specialize in providing comprehensive shipping and logistics services throughout North America. They offer a range of services, including container shipping, multi-modal transportation, warehousing, distribution, and customs clearance. With a strong presence in the region and a network of weekly services connecting key ports, these companies are well-equipped to meet the needs of businesses looking to transport goods between North America and other parts of the world.