BRI projects bolster China-Peru ties

China's contributions to Peru's infrastructure are bringing the two countries closer as the South American country embraces rail networks and regional logistics services, analysts say.

The mountainous country is expected to upgrade its rail links through Chinese financial and construction assistance, including a 323-kilometer rail link between the capital Lima and Ica, dubbed the "Bullet Train Mega Project".

"The more China's role in Peru deepens, the more we see (the country's) infrastructure capabilities, construction speed and commitment to developing infrastructure projects," said Jhon Valdiglesias Oviedo, a researcher at the Center for Asian Studies at the National University of San Marcos.

The Lima-Ica project, scheduled to break ground in late 2025, is expected to be completed within five years. It includes 47 kilometers of viaducts and 32 km of tunnels. Upon completion, the electric trains will operate at speeds of up to 200 km per hour for passengers and 100 km per hour for cargo.

It will have 15 stations at strategic points with a daily capacity of 45,000 passengers.

The rail link is expected to bring major economic benefits to Peru and create direct and indirect employment during construction while reducing traffic congestion and pollution. It aims to boost regional tourism and commerce between key economic zones, including Villa El Salvador and Paracas.

The project will deepen Sino-Peruvian economic ties while expanding China's Belt and Road Initiative in Latin America, said Oviedo. When countries like Peru can fast-track agreements with China, it offers an advantage. And Peru is expected to expand its other rail links as well in the coming years.

"Peru chose to partner with China because they're our largest trading partner. The relationship brings immediate benefits to Peru through foreign exchange, job creation and economic growth," Oviedo said. "While these are the most direct advantages, we are also seeing a strong push in our exports."

Peru plans to integrate the train by connecting the Andean region with the Port of Chancay through a "Bi-Oceanic Rail Corridor", one that links the Pacific and Atlantic oceans. The Chancay Tunnel, completed by Chinese builders from the China Railway Group in early October, has facilitated logistics from the coastline to the mountains.

The $3.5 billion Chancay port project, built by COSCO Shipping among others and inaugurated late last year, has reduced shipping time to Shanghai by up to 20 days, to just 23 days now.

"The Port of Chancay is becoming a cornerstone for future Chinese investments in Peru's infrastructure development," said Oviedo.

Peru's economic ties with China will extend beyond traditional mineral exports, which accounted for 79 percent of Peru's total exports to China in 2023, according to Lima's statistics. The shift is particularly evident in agriculture and manufacturing.

"Peru is well-positioned to expand its presence in China's growing market for fruits and vegetables, where we're already competitive," said Omar Narrea, a researcher at the Center for China and Asia-Pacific Studies of Universidad del Pacifico, a tertiary institution based in Lima.

The writer is a freelance journalist for China Daily.