PortandTerminal.com, May 16, 2019
Port of Chancay will be Cosco’s first greenfield subsidiary in South America.
China’s Cosco Shipping Ports Ltd signed a $3 billion deal with Peru’s Volcan Compania Minera to invest in the port of Chancay on the South American country’s Pacific coast. The port is the company’s first greenfield subsidiary in South America.
Port of Chancay
Port of Chancay is a natural deep-water harbour with a maximum of 16 meters water-depth and is capable of satisfying the needs of mega vessels. The construction of Port of Chancay includes multi-purpose terminals, container terminals and related infrastructure facilities. The first phase of the port project, which is located 72 kilometres (44.74 miles) north of Lima, will cost about $1.3 billion.
Cosco Shipping Ports will operate the port and plans to pay up 60 percent of the investment to build it. Construction of the $3 billion port will start at the end of this year and it will be launched by end-2021.
Two terminals are in the works – one for liquids and grains, and another for container cargo.
The first-phase handling capacity will be over 1 million TEU, while the second phase would see Chancay surpass Callao and become Peru’s biggest port.
Peru / China
China is Peru’s top trade partner and imports most of the mineral resources the South American country produces, including copper. However, Chinese companies have increasingly expressed interest in investing in sectors beyond mining.
In late April Chinese Ambassador to Peru, Jia Guide announced that Peru was set to sign a memorandum of understanding to join China’s Belt and Road infrastructure initiative.
In just a decade, trade between China and Latin America has multiplied more than 20 times as regional partners have signed hundreds of agreements and broken ground on dozens of key energy, transport and infrastructure projects in strategic locations.
Peru’s decision to join the initiative comes two weeks after a visit by United States Secretary of State Mike Pompeo, who during his trip to South America repeatedly warned about China’s intentions in Latin America.
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