China Secures 60-Year Control of $3.6B Chancay Megaport, Inaugurated November 2024

Dec 22, 2024, 08:31 AM

China's state-owned Cosco Shipping has secured a 60-year exclusive use of Peru's new Chancay megaport, a $1.3 billion investment in a $3.6 billion project that aims to transform the country into a key trade hub linking South America to Asia. The port, located 80 kilometers from Lima, is part of China's Belt and Road Initiative and is expected to significantly lower logistics costs for Chinese exports while boosting Peru's trade revenues. The facility includes a 1.8-kilometer tunnel connecting to the Pan-American Highway and is designed to handle a million containers, 6 million tons of bulk cargo, and 160,000 vehicles annually. It is also projected to create 8,000 jobs. Officially inaugurated in November 2024, the project has faced criticism over environmental concerns, land acquisition practices, and potential dual-use military applications. The Chancay port symbolizes China's growing economic influence in Latin America, a region where U.S. engagement has been comparatively limited.