China Opens $3.5B Port in Peru, Expanding Maritime Silk Road to South America

China has officially inaugurated the $3.5 billion Chancay port in Peru, marking its first Beijing-funded port in Latin America.

Chinese President Xi Jinping participated virtually in the opening ceremony alongside Peruvian President Dina Boluarte, highlighting the project's strategic role under China's Belt and Road Initiative (BRI). The port, located about 50 miles north of Lima, is expected to serve as a significant hub for trade between Asia and South America.

President Xi described the port as "the birth of a new land-sea passage" and emphasized its potential to strengthen economic ties between China and the region. He noted that the facility is expected to reduce shipping transit times by more than 10 days and cut logistics costs by over 20%.

The Chancay port, developed in partnership with Hong Kong-listed Cosco Shipping Ports, features a maximum depth of 17.8 meters, enabling it to handle the world’s largest container ships. The port is anticipated to manage up to one million containers in its first year of operation.

Peru, China’s fourth-largest trading partner in Latin America, exported nearly $36 billion in goods to China in 2023. The new port is also expected to facilitate trade for neighboring countries, including Chile, Colombia, and Ecuador, by providing a direct maritime corridor to Asia, bypassing ports in Mexico and the U.S.

While the port's opening signals enhanced economic opportunities, concerns have been raised by U.S. officials regarding the implications of Chinese investment in the region. Brian Nichols, a senior U.S. diplomat, urged Latin American nations to ensure such projects adhere to local laws and environmental standards.

The Chancay port is part of a broader network of infrastructure projects under the Belt and Road Initiative, designed to boost trade connectivity and China’s geopolitical influence. The project underscores China's expanding presence in South America as it seeks to deepen its engagement in global markets.

President Boluarte described China as a key partner in Peru's economic growth, underscoring the significance of the port in strengthening bilateral relations. The facility, described by Xi as South America’s “first smart and green port,” is expected to play a critical role in the export of minerals such as copper and lithium, as well as the import of Asian electronics and consumer goods.