Cosco Shipping Ports (CSP) reportedly plans to invest around US$3 billion to build a container port in Peru, as the Chinese government advances the Belt and Road initiative to South America.

Phase 1 of the port construction in Chancay, 55km north of the capital city Lima, is underway and set to open in 2023.

Plans for the port construction began in 2019, when Cosco Shipping Port bought a 60% stake in Terminales Portuarios Chancay from Peruvian mining group Volcan Compania Minera, a subsidiary of Swiss commodity trading group Glencore, to develop the Chancay port. It is the Cosco group’s first Deepwater port in South America.

China Railway, China Communications Construction Company and the latter’s subsidiary China Harbor Engineering Company are involved in the port construction.

According to the plan, the new port can accommodate the world’s largest container ships, handling up to 1 million TEU annually. The port will be part of an industrial complex that includes a 1,100-ha logistics park.

CSP is said to be envisioning Chancay as a hub for the South American region. The logistics park is located 78 km from Lima and connects to the Pan-American Highway, which is emerging as a complement to Callao, Peru’s main container port.

Cosco Shipping Lines is currently lagging behind Maersk Line on the Asia-South America west coast. Maersk Line has a market share of 21%, while Cosco Shipping’s is around 14%.

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By Martin Li