Peru’s Chancay Port Opens New Trade Route Between China and Latin America

The beginning of operations at the new Chancay Port in Peru marks a milestone in Latin America’s port infrastructure and will play a key role in the region’s trade with China. Located 80 kilometers north of Lima, the mega-port officially begins commercial operations today.

Developed by the Chinese-Peruvian consortium Cosco Shipping Ports Chancay, the project is positioned as a strategic logistics hub, directly linking South America with Asia—especially China.

The new Chancay Port will be pivotal for Latin America-China trade

The Chancay Port represents a total investment of approximately US$3.5 billion. The first phase, completed in November 2024, included the construction of four berths, an administrative complex, logistics facilities, and a nearly two-kilometer tunnel linking the port to the Pan-American Highway.

With a natural depth of over 17 meters, the port is built to accommodate vessels of up to 24,000 TEUs, making it the first deep-water port on the South American Pacific coast.

The launch of Chancay Port has the potential to reshape the region’s trade dynamics. By providing a direct shipping route to Shanghai in just 23 days, it drastically reduces transit times and logistics costs for South American exports.

This is particularly advantageous for countries like Colombia, Ecuador, and Chile, which can use Chancay as a transshipment hub for goods headed to Asia.

Additionally, the port is part of China’s Belt and Road Initiative, reinforcing the Asian giant’s presence in Latin America and opening new avenues for investment and regional development.

An opportunity for Colombia-China trade

The new infrastructure presents a significant opportunity for trade between Colombia and Asia, particularly with China. As the Colombian government deepens its partnership with the Asian giant following its recent accession to the Belt and Road Initiative, Chancay Port is expected to play a vital role in facilitating the flow of goods between the two countries.

Colombia’s Buenaventura Port, located on the Pacific coast, will be central to this effort. According to Gonzalo Ríos, Deputy Manager of Cosco Shipping Ports Chancay, Buenaventura has joined Cosco Shipping Lines’ WSA5 route to connect with Chancay and access Asian markets.

“It’s an optimization of transit times without transshipment. Chancay enables not only a trade window but also production along with other elements of the logistics chain, such as shipping lines and connectivity,” Ríos explained.

Both Colombia and Brazil—Latin America’s regional powerhouse—stand to benefit from a reduction of up to 10 days in transit time.

Liborio Cuéllar, manager of Colombia’s Buenaventura Port, stated late last year that Chancay “will complement Buenaventura.”
“It won’t take cargo away from us—we handle nearly one million containers,” he said, emphasizing cooperation rather than rivalry between the two ports.

As for why China chose to invest its multibillion-dollar project in Peru rather than Colombia, Chinese Ambassador to Bogotá Zhu Jingyang attributed the decision to the policies of previous Colombian administrations.

“It’s a consequence of the country’s earlier stance of keeping its distance from China and not joining the new Silk Road. Now that Colombia has addressed this shortcoming, I believe good news is on the way,” he said.

The growth of Chinese influence in Latin America

Over the past two decades, China has cemented its role as a major economic force in Latin America, overtaking the United States as the top trading partner for several South American countries, including Brazil.

According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), bilateral trade between China and the region has multiplied 35-fold since 2000, reaching a record $480 billion in 2023.

This surge has been largely fueled by Chinese demand for raw materials such as soybeans, minerals, and oil from countries like Brazil, Chile, Peru, and Argentina.

Chinese investment in infrastructure has also played a significant role. Among the most prominent examples is the Chancay Port—officially inaugurated today—which was financed by the Chinese state-owned company Cosco Shipping.

Meanwhile, competition between China and the United States for regional influence has grown more intense. As Washington continues to follow the protectionist and tariff-heavy policies set during the Trump administration, countries such as Colombia have opted to deepen ties with Beijing by joining initiatives like the Belt and Road.

This evolving landscape presents Latin America with a complex balancing act: leveraging economic opportunities from both global powers while safeguarding its sovereignty and long-standing strategic alliances.