A few years ago, Chancay, located on the coast of Latin American country Peru near the capital city of Lima, used to be a haven for migratory seabirds. These birds used to come here from Canada and America for a few months. This coast also used to be a source of livelihood for fishermen.
This city with a population of only 63 thousand 400 is a coastal area bordering the Pacific Ocean. Little did the residents know that within a few years, the city would be transformed into a mega port that would become an important link for trade between Latin America and China.
Here it is common to sit on a wooden bench by the roadside and talk or a shopkeeper tells a tourist that the best fish is found here. This is still true today.
But since the end of 2021, citizens here have been living amid the constant sounds of earth-leveling machines and explosions.
A major Chinese company, Cusco Shipping Ports, is building a multi-purpose port terminal, or mega port, in Chancay, 80 kilometers from the capital city of Lima. It is believed to be a structure through which China can expand its presence in Peru as well as its foothold in Latin America.
Through this port, copper and other minerals found in Peru can be exported to China in large quantities. Due to its large spread and operational capacity, this mega port can soon become a hub for international trade.
Margaret Myers, an expert on Asia and Latin American affairs at The Dialogue, told BBC Mundo that 'it is not difficult to imagine how large the port will be in terms of its role in exports to China and Asia in the future.'
According to data from the Chinese government, the mega port that the Cusco Shipping Ports Company is building in Chancay will be built at a cost of around $3.6 billion. The Peruvian government expects the port to handle $580 billion in annual trade between China and South America.
However, this ambitious plan is mired in controversy. The governments of Peru and China, which are backing it, say it will develop the region, create new jobs and increase business. But its opponents argue that it will have an impact on the indigenous population, as well as damage the environment.
-Peru shares borders with Bolivia, Brazil, Chile, Colombia, and Ecuador
-Peru's largest trading partners are China, the United States, South Korea, Canada, and Japan
-China exports many commodities such as bronze, gold, and refined bronze
-In 2020, Peru was the world's largest sulfide exporter
-According to the White House report, Peru was also the world's largest producer of cocaine in 2019, after Colombia.
China's biggest project since setting foot in Peru
Peru's government wants to ease shipping congestion in the country's main port of El Clave by building a new port. El Clave port is used for most imports.
But work on the government project started when China showed interest and decided to invest in it. With the arrival of Cosco Shipping, things began to move quickly.
Chancay Port will have the facility to handle cargo from the world's largest cargo ships that will be able to carry 18,000 containers at a time. Initially, four points will be created for freight, later it will be increased to 15. There will be a kilometer-long space between the two standing points of the ships where there will be storage facilities.
The area surrounded by Peruvian hills is being leveled to build this port. At the same time, a 1.8 km long tunnel is being excavated for the road being built to connect to the nearby Pan American Highway. This tunnel will pass under Chancay city.
This road will have three lanes for general vehicles and two lanes for goods vehicles. It will also have large storage areas for storing containers, a dedicated space for parking heavy vehicles, and offices and customs offices.
What is China's plan?
According to former Peruvian Minister of Transport and Communications Juan Brazilela, Chanque will actually become a 'regional hub' connecting neighboring Chile, Colombia, and Ecuador. China's ambassador to Peru, Liang Yu, says, "This will greatly help the development of the whole country and from here the goods can be exported to the whole world."
All this China is doing under its ambitious New Silk Road plan, which it officially calls the 'Belt and Road Project'. This is a very bold investment plan that was launched by Chinese President Xi Jinping in 2013. Under this, China provides money for major construction projects in other countries.
Margaret Myers says: 'Peru has long been an important ally of China. It has welcomed China with open arms and Peru is also interested in Chinese investment.'
She says: 'China took a year to create a specific strategy. He encourages his companies to invest in countries where they can obtain natural resources and in whose markets they can sell their goods. Peru is important to him because it is a country rich in minerals. Copper is found here in abundance, which is in great demand in China.'
What is the advantage of Peru?
According to 2021 data, Chile was the largest copper producer in the world, followed by Peru. In 2021, Peru produced 220 million metric tons of copper.
Statistics show that China has overtaken the US to become Peru's largest import and export partner. Its trade with China was about $10.3 billion in 2020.
Myers says trade between the two is likely to increase further after the Chancay port is built.
Juan Branzuela told, Mundo shortly before he left office that 'Chanke's plan distinguishes his country internationally from other countries such as Chile, which has been a commercial dominant force in the Asia-Pacific region.'
According to him, this mega port will work to advance the country's economy and take Peru to a special place on the international level.
China's investment in Latin America
-Between 2000 and 2018, China invested $73 billion in raw materials in Latin America.
-China is investing billions of dollars in infrastructure development in Brazil. China buys large quantities of iron ore from Brazil
-In January 2015, Chinese President Xi Jinping announced an investment of $250 billion in Latin America over the next decade.
-In 2016, Chinese President Xi Jinping visited Peru, Chile, and Ecuador
-Argentina signed an agreement to join China's 'Belt and Road' project. Ecuador and Uruguay have also joined hands with China for this project
-Peru formally agreed to join the Chinese project in 2019
-China launched the Asia Infrastructure Investment Bank (AIIB) in 2013. A year later he launched his Belt and Road project.
-It is believed that AIIB provides financial support for infrastructure work under the Belt and Road. However, speaking to Forbes in 2017, the head of AIIB's communication department said that it is not necessary to approve every project under the Belt and Road.
Source: BBC
0 Comments