by Manal Barakat, SeaNewsEditor

(AI-Translations): Español

China's Guangzhou Port, the largest shipping hub in the country's south, announced the launch of a direct route to Chancay Port in Peru.

This new route, reported by China's state broadcaster CCTV, is expected to reduce logistics costs and enhance trade with Latin America.

Chancay Port, located north of Lima and constructed by COSCO Shipping Ports with an initial investment of $1.3 billion, can accommodate the largest vessels on South America's Pacific coast.

The direct route to Peru takes approximately 23 days and is projected to cut logistics costs by around 20%. This development will expedite the connection between Guangzhou Nansha Port and other Latin American ports, including Mexico's Port of Manzanillo and Chile's Port of San Antonio.

The route is anticipated to boost exports of household appliances, electronic products, furniture, and toys to Latin America. Conversely, high-quality fruits, seafood from the Pacific coast, and red wine from the Andes will reach China more swiftly.

Chancay faces logistical challenges

Since its opening on 14 November, Chancay Port has handled nearly 60,000 containers and aims to establish itself as a new trade hub between South America and Asia.

However, due to its strategic significance, the project faces logistical challenges and increasing international scrutiny.

One of the main issues is the limited land connectivity with Lima and Callao. Of the four road projects the National Infrastructure Authority prioritised to connect Chancay with the northern part of the capital, only one has shown tangible progress.

Additionally, the area around Chancay lacks an approved Urban Development Plan.

This situation hinders the development of over 7,000 hectares with industrial potential and limits the attraction of new private investment.

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