Xiconomics: From Chancay to Shanghai: new voyage of common development

SHANGHAI/LIMA -- The pulse of global trade quickened as the first cargo ship from Chancay, Peru, docked at Shanghai's bustling port on Wednesday, carrying fresh fruits across the Pacific for Chinese consumers.

With the arrival of the "Xin Shanghai," a vessel operated by China COSCO Shipping Corporation Limited, at Shanghai's Yangshan Port, cranes creaked to life, unloading containers that represented more than just goods -- they carried the promise of a new maritime corridor bridging South America and Asia.

From Peru's Pacific coast to one of China's economic hubs, the vessel's journey marked a new step toward deeper trade ties and turned a broad vision of shared development into reality.

NEW MARITIME-LAND CORRIDOR

The ship set sail from Chancay Port, a site poised to become a key logistics hub in Peru. Situated 78 km north of capital Lima, the port is expected to facilitate trade between Peru and Asia, cutting shipping time to China to just 23 days from 33 days and slashing logistics costs by at least 20 percent.

In November, visiting Chinese President Xi Jinping, alongside Peruvian President Dina Boluarte, officially inaugurated the deep-water megaport, marking the launch of what Xi described as a new Asia-Latin America land-sea corridor. Xi also called on the two sides to ensure that the port is successfully built, managed and operated, and to improve shipment capacity and service quality.

For over a month since the inauguration, the first smart port in South America is running smoothly. With a number of large screens and specially designed software that can monitor the port in real time, all kinds of operations inside the port, like transporting shipping containers, can be arranged in a more effective manner.

Daniel Jares, a contract control coordinator at the port, said the port has seen a steady increase in business recently, with an increase in the number of managers, operators and maintenance staff. "People are excited about the changes that are happening at the port every day."

Before Chancay, South American goods bound for China were shipped through North America, costing a significant amount of time with expenses running high. With this new direct route, Peru stands to benefit from increased exports and economic growth.

Beyond its efficiency, Chancay is strengthening Peru's strategic role as a vital gateway, linking land and sea routes while serving as a bridge between China and Latin America. The port has transformed maritime logistics in the Pacific, said Rosario Santa Gadea, former director of the Center for China and Asia-Pacific Studies at the University of the Pacific in Peru.

Projections show that Chancay Port could generate up to $4.5 billion in annual revenue for Peru and create over 8,000 direct jobs. Looking ahead, products such as Brazil's soybeans, iron ore, and frozen meat -- along with Colombia's coffee and avocados -- are expected to be regularly shipped to Asia via this new trade corridor.

CLOSER TRADE LINKS

The Chancay Port project is not only an infrastructural feat but also a symbol of the deepening trade relations between China and Peru. Over the past decade, trade between the two countries has grown rapidly, driven by China's increasing demand for Peru's agricultural and mineral products such as fruits and seafood.

China has been Peru's largest trading partner and largest export market for 10 consecutive years. From 2016 to 2023, bilateral trade grew at an average annual rate of 14.6 percent, reaching $37.69 billion last year. This mirrors the increasingly closer economic links between the two nations.

The completion of Chancay Port will bolster these trade links by reducing the time and cost of transporting goods, said Santa Gadea.

The facility is expected to handle millions of tons of goods annually, providing a faster and more efficient route for Peruvian exports to reach China's ports. At the same time, China will benefit from the improved access to South America's growing consumer base.

In addition to fostering trade, the Chancay Port project is likely to stimulate new business ventures and joint investments between Chinese and Peruvian companies. The port's modern infrastructure is expected to attract global companies seeking to expand their operations in South America, creating new opportunities for collaboration and economic growth.

The port's capacity to handle large volumes of cargo will also facilitate the growth of trans-shipment operations, making it what Santa Gadea called a regional trade hub for South America.

Felipe Ribadeneira, president of the board of directors of the Ecuadorian Federation of Exporters, told Xinhua that shorter transportation time is great as bananas, shrimp, cocoa and other agricultural products from Ecuador can reach the Chinese market more quickly through this new channel.

BLUEPRINT FOR COMMON DEVELOPMENT

Also at the port's inauguration ceremony, Xi said the corridor, to connect the Inca Trail with the 21st Century Maritime Silk Road, will open up a road of common prosperity and happiness for Peru and other Latin American and Caribbean countries.

As analysts pointed out, the port represents more than just a logistics hub -- it is a concrete manifestation of the broader vision for common development that underpins the Belt and Road Initiative (BRI). The initiative, proposed by Xi, emphasizes mutual benefit, win-win cooperation, and shared prosperity among participating countries.

Addressing the fourth symposium on Belt and Road construction work in Beijing earlier this month, Xi stressed the importance of comprehensively advancing high-quality cooperation under the BRI.

Since the initiative was put forth in 2013, major achievements have been made in Belt and Road cooperation, enhancing China's friendship with participating countries and promoting their economic and social development, he said.

Jorge Chain, general manager of the Peru-China Chamber of Commerce, described the Chancay Port project as a prime example of "beneficial and mutually advantageous cooperation."

Over the past decade, China and Latin America have become partners under the BRI. So far, 22 countries in the region have signed BRI cooperation documents with China. A host of projects jointly built under the BRI, including the Belo Monte Hydropower Plant ultra-high-voltage transmission line in Brazil, Argentina's Belgrano Cargas railway and the Jamaica North-South Highway, have borne fruit.

For Peru, Chancay Port offers an opportunity to enhance its role in the global supply chain. As one of the leading economies in Latin America, Peru has long been recognized for its abundant natural resources. With global demand for these resources constantly evolving, Peru will have more opportunities to diversify its economy and develop new sectors.

"The BRI brings more connectivity and is contributing to the development of this agriculture sector. But this is just the first step; the second step is to develop more manufacturing products, export of manufacturing products," said Santa Gadea.