China is actively building a megaport on the coast of the Pacific Ocean in order to increase trade with South America. In this region, namely in Peru, the Chankai deep-water port may open this year, the project of which is estimated to cost $3.5 billion.
Over the past 10 years, China has supplanted the United States as South America's largest trading partner, capturing soybean, corn and copper markets. The Changkai megaport, which will be the first Chinese-controlled port in South America, is capable of handling huge cargo ships bound directly to Asia, cutting shipping times for some exporters by two weeks.
Peru's Minister of Trade, Juan Mathews Salazar, emphasized that the Changkai megaport aims to transform Peru into a strategic trade and port hub between South America and Asia. The new port poses a challenge to the US and Europe, which are trying to contain China's growing influence in Latin America.
The Chinese state company COSCO Shipping, which controls the port as part of the One Belt One Road initiative, is behind the project. The first phase of the port is scheduled to be completed by November 2024 and is expected to be inaugurated by Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit this month.
In response to this move, the Peruvian government plans to create an exclusive economic zone around the port, and COSCO has expressed its intention to build an industrial center near Chancay to process raw materials, including grain and meat from Brazil.
