Cosco Shipping Peru Chankai Port Is about To Test Operation! To Build An Important Logistics Hub between South America And Asia

Cosco Shipping Peru Chankai Port is about to test operation! To build an important logistics hub between South America and Asia

The Chancay Terminal in Peru, which COSCO Shipping Ports holds and invests in, is set to launch trial operations in mid-to-late November, further boosting trade between Asia and South America.

It is reported that during the "trial operation" period, the port will load and unload two direct container ships per week, which can handle ships with a maximum load capacity of 14,000 TEU, and will be capable of handling 24,000 TEU of super-large ships in the future. When the port is put into commercial operation, it can reduce the shipping transit time between Peru and China from 35-40 days to 23 days, aiming to become an international transit hub port in South America.

On the afternoon of November 7, a cargo ship from China's Taicang port arrived at Chankai Port, carrying equipment and components used by automated vehicles operating in the port, which was the first cargo ship to arrive at Chankai Port. According to the report received by the customs department in the port of Qiankai, the second cargo ship from China will carry vehicles, agricultural machinery and hydraulic excavators. Three other cargo ships have recently arrived at Chankai Port, two from Hong Kong and one from the mainland.

Chankai Port is located in the Chankai Bay, about 80 kilometers north of Lima, the capital of Peru, located on the Pacific coast of South America, as a natural deep-water port, with a maximum depth of 17.8 meters.

Construction of the port began in 2011 with an initial investment of $1.3 billion and the first phase is expected to be completed by the end of 2024. The designed capacity of the port is 1 million TEU per year in the near term and 1.5 million TEU per year in the long term. The first phase of the project will consist of four operational berths, including two container berths and two multi-purpose berths

In January 2019, COSCO Shipping Port Co., Ltd. and Peru Volcano Mining Group signed a project subscription and investment agreement in Davos, Switzerland, and COSCO Shipping acquired 60% of the equity of Peru Chankai Terminal, and the project was officially delivered in May of the same year. On June 14, 2024, the arrival ceremony of the first port machinery equipment in the Peruvian port of Chankai was held in the port.

Cosco Shipping Ports owns 60 per cent of Chankai, while Peruvian miner Volcan, controlled by Glencore, the world's largest commodities trader, holds the remaining 40 per cent.

Some international media have called Chankai Port "the Port of Singapore in Latin America" and "the gateway from South America to Asia", and believe that the port will become an important hub for global shipping. However, there is also some concern about the geopolitical risks of Chankai, especially as US officials have repeatedly expressed concerns about the port to the Peruvian government.

Cosco Shipping Peru Chankai Port is a port project with important strategic significance and economic value. Its completion will provide more trade opportunities and economic development opportunities for Peru and neighboring countries, and will also further promote the development of China-Latin America trade.