The first Chinese-controlled port in South America has been inaugurated in Peru. President of Peru Dina Boluarte spoke of a “historic moment for Peru”, although Chinese control of the ports is not without controversy.
Boluarte and Chinese President Xi Jinping virtually attended the opening ceremony of the mega port of Chancay, about 80 kilometers from the capital Lima, at the presidential palace. Xi is in the country for the Asia-Pacific Economic Cooperation (Apec) summit.
The Chinese state group Cosco Shipping Ports has a 60 percent share in the port, the Peruvian company Volcan Compañía Minera has 40 percent. A total of 3.5 billion dollars (3.3 billion euros) will be invested in the construction of the port. During the first expansion phase, approximately one million containers can be handled annually. (Read more below the photo)
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Cosco will set up a direct route to Shanghai, making the journey take approximately 23 days. Currently, ships from Peru usually sail to China via Manzanillo in Mexico and Long Beach in the United States, a journey of about 40 days.
“The port should promote connectivity between China and Latin America,” Xi said, calling on everyone to work together. According to Boluarte, the project shows that the Peruvians are “a reliable partner”.
“No port for the Peruvians”
Yet there is also criticism. The Peruvian Congress has signed a law granting Cosco exclusive use of the port. “That shows that China is not building a port for the Peruvians, but a Chinese port in Peru. That is a big difference,” said Argentinian logistics expert Agustín Barletti in the newspaper El Cronista.
Trade volume between China and Peru has doubled to $33 billion since the signing of a free trade agreement in 2009. Over the past decade, Beijing has invested about $24 billion in mining and energy projects in the country.