Source-This post is based on the article “China widens trade highway in South America with new mega port project” published in “The Hindu” on 19th January 2024.
Why in the News?
China has constructed a mega deep-water port in the Chancay city, Peru(a South American country). Operations are scheduled to commence in late 2024.
About Chancay Port
| Specifications | Details |
| Location | 1. Chancay town of Peru 2. Chancay is 80 km north of Peru’s capital city, Lima. |
| Objective | To transform Peru into a key commercial and port hub connecting South America and Asia. |
| Owned by | 1. It is primarily owned by the Chinese state-owned company Cosco Shipping, which holds 60% stake in the port. 2. It signifies China’s first control of a port in South America. |
| Construction | 1. Its construction commenced in full in 2018. 2. It is built as part of China’s Belt and Road Initiative investments in Latin America. 3. The first phase of Chancay is set to be completed in November 2024 |
What is the Significance of this Project?
1) It will provide China, with a direct access to the resource-rich region, where, over the past decade, Beijing has surpassed the U.S. as South America’s leading trade partner.
2) The town of Chancay in Peru will evolve into a regional hub for copper exports from the Andean nation and soy from western Brazil. Currently, these shipments either pass through the Panama Canal or take a route along the Atlantic before heading to China.
3) It will also contribute to strengthening bilateral trade relations between Peru and China. According to the latest annual data, China currently holds a bilateral trade lead of over $10 billion.
Note– Around 150 countries have signed on to the Belt and Road with China, out of which 22 are Latin American countries.
About Peru
1) Location- Peru is located in western South America, entirely in the Southern Hemisphere.
2) Borders- It shares borders with Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, Chile to the south, and the Pacific Ocean to the west and south.
3) Water bodies:
a. Lake Titicaca’s endorheic basin and the Amazon basin in this region flow into the Atlantic Ocean.
b. The Ucayali River is the longest river of Peru.
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