1 July 2024 (Lloyd's List) - PERU’s President Dina Boluarte has underscored the prospects of the Chancay port, in which Chinese state-owned giant Cosco has invested, saying she expects the port to boost regional development with more global investment.
Meeting with Cosco executives in Shanghai during a state visit to China, Boluarte assured that Peru “has legal, social and political stability to guarantee the company’s investments” and reaffirmed that her government will “honour and respect the commitments” made with Cosco in 2021.
Her remarks came in the wake of the recent resolution of a dispute regarding Cosco’s exclusive operating rights for the terminal under construction in Peru, amid growing concerns from the US and Europe over China’s rising influence in Latin America.
In 2021, Peru granted exclusivity to Cosco Shipping Ports for the terminal, in which the Chinese company invested $3.5bn. However, in March, Peru attempted to revoke the deal, citing an “administrative error”.
Only days before Boluarte visited China, the Peruvian congress approved amendments to the country’s ports law, ensuring the preservation of Cosco’s exclusive rights.
With a depth of nearly 60 feet, the port will be the first on South America’s Pacific coast capable of accommodating the largest tonnage.
Chancay would lead the country to become “the first logistics centre in the South Pacific”, Boluarte said.
She also emphasised that the Chancay port will be inaugurated in November, when the Asia-Pacific Economic Cooperation leaders’ summit is scheduled to be held in Lima, with the presence of China’s President Xi Jinping.
The Peruvian government was considering the creation of a special economic zone that would include the port and surrounding area, offering tax and other benefits to companies that invest there, she said.
Boluarte also said she expected that an electric vehicle assembly plant would be built there to take advantage of Peru’s copper and lithium production.
During her week-long stay in China, Boluarte also visited one of the country’s largest car makers, BYD, in Shenzhen.
“We are convinced that the port will become a strong engine for Peru’s economic development and a model for economic and commercial co-operation,” Cosco chairman Wan Min said, “Once its construction is completed, Chancay will become the most modern port in South America.”
Wan also said that when the port opens, a new route would be launched between Shanghai and Chancay, reducing the voyage time to 23 days, 10 days fewer than at present.
“This will greatly strengthen the export of agricultural products, both from Peru and South America,” he said.
“The Chancay megaport will become an important gateway for Peru and South America not only to Asia but to the rest of the world.”
