Chancay Port becomes new trade gateway

Peru's Chancay Port has completed its first full year of commercial operations, steadily emerging as a new gateway for trade between China and South America.

The port marked its first anniversary on Nov 15, a milestone that comes as cargo flows to and from China continue to rise.

Carlos Aquino, a professor of international economics at the National University of San Marcos in Peru, said early signs suggest the port is starting to reshape regional trade patterns.

"The volume of cargo leaving the port to go directly to China is increasing, not only the cargo from Peru, but also from Ecuador, Chile and Colombia," Aquino said. The new route shortens travel time by about 10 days, translating into a roughly 30 percent reduction in freight costs, he said.

The port is already influencing trade patterns across the region, boosting both Latin American exports to China and imports arriving from China, he said.

Peru's customs administration said in a statement on Oct 31 that the value of Chinese goods imported through Chancay Port has surpassed $759 million this year, led mainly by vehicles and machinery. The figure reflects the rapid expansion of bilateral trade since the port began operating, it said.

The agency added that 79 percent of customs declarations processed at Chancay listed China as the destination, underlining "the importance of trade between our country and China".

In the same statement, Javier Eduardo Franco Castillo, chief of the customs administration, highlighted Peru's commitment to strengthening the security and efficiency of its trade flows. The agency will continue facilitating international logistics chains and combating smuggling "to support trade with the world's main economies, including China, our principal trading partner", he said.

The rise of Chancay Port is also prompting competition within Peru. Aquino said the country's largest port, Callao, is upgrading its infrastructure to keep pace.

"Callao is investing more to be able to compete with Chancay …and it is now also offering a direct link to China and Asian ports," he said, adding that the heightened competition is already "lowering the cost of freight for Peruvian exporters and importers".

Beyond port competition, Aquino said Chancay will trigger wider infrastructure investment across Peru. The need to transport more goods to the port is driving new proposals, including highways and the long-discussed bi-oceanic railway linking Peru and Brazil, he said.

"If (goods) could go directly from Chancay, it could save 20 days at least. But for that a railway linking Peru and Brazil is needed."

Two export-processing zones are also planned near the port, which could allow Peru to shift from exporting raw materials to manufacturing value-added goods, Aquino said.

Improved efficiency

Logistics efficiency has already improved, he said. More fresh agricultural goods such as blueberries, grapes and avocados are being shipped to China through Chancay, benefiting from the shorter transit time.

To reach the consumer market faster is crucial, Aquino said. "The faster they reach, the more time the products can be shown in the marketplace."

On the import side, Aquino said goods arriving from China are becoming more affordable, including electronics, automobiles and industrial machinery.

Chancay Port is also becoming a new entry point for Chinese electric vehicles, which are rapidly expanding in South American markets.

"EVs are becoming cheaper because they are coming directly through Chancay Port," Aquino said. Consumers are increasingly recognizing the long-term savings of electric models compared with gasoline-powered vehicles, he added.

These developments are reshaping regional supply chains, he said. "Peru is becoming the port of entry for Chinese and Asian goods to South American markets — and the exit port for South American goods to China and Asian markets."

As Chancay begins its second year of operation, Aquino sees its role only growing. With direct connections to Asia and interest from South American exporters, the port is "on track to become a major logistics hub between China and Latin America", he said.

gaoyang@chinadailyusa.com