November ushers in early summer in the southern hemisphere. In Peru's capital Lima, billboards and slogans decorate the facades of houses of varying sizes while vendors call out to bustling crowds. Eighty kilometers away, amid a vast stretch of barren sand, lies Chancay Port.

A new gateway 

Located on Peru's central coast, the Chancay Port faces China across the Pacific Ocean. A natural deep-water harbor, it can accommodate almost all types of ships from around the world, including container ships and ultra-large oil tankers.

The area also boasts rich fishing resources and enchanting island scenery. For a long time, mentioning Chancay reminded Peruvians only of its fishing industry. It lagged behind the global maritime industry, and its dream of becoming a major international port appeared distant.

However, in partnership with China, Chancay Port is emerging on the world's maritime stage.

The port officially began its operation on November 14. A new trade vessel, dubbed the "Peru Ship" and built by China's COSCO Shipping, arrived at the port following a 26-day journey, carrying over 3,000 items of cargo, among them Chinese new-energy cars, buses and excavators. Shore cranes stood in neat formation, lifting cargo with precision. The unloaded goods were transported away by an orderly swarm of autonomous container trucks.

From Chancay to Shanghai, the Chancay Port will strongly consolidate Peru's position as a gateway that connects land and sea, Asia and Latin America, said Chinese President Xi Jinping on November 14 when attending the opening ceremony of the port via video link with his Peruvian counterpart Dina Boluarte.

Chancay Port is not only a major project under the Belt and Road Initiative (BRI), but also the first smart and green port in South America. The port is becoming a starting point of an Inca Trail of the New Era, and is witnessing the formation of a new route across land and ocean between Asia and Latin America and the Caribbean (LAC).

In Spanish, "Chancay" is pronounced similarly to "Shanghai," giving rise to the catchphrase "from Chancay to Shanghai," which encapsulates the aspirations people hold for this new route.

"LAC countries are important components of Sino-Latin American relations, and practical cooperation between China and Peru leads the way," Huang Jiqing, Vice President of the Association of Chinese Enterprises and General Manager of China Communications Construction Co. in Peru, told Beijing Review.

For a long time, trade between eastern South American countries, like Brazil and Bolivia, and East or Southeast Asia was hindered by the Andes Mountains, which forced goods to journey through the Panama Canal or around the Strait of Magellan, complicating the process and raising costs. Additionally, the journeys via the Panama Canal face challenges such as congestion, reduced shipping capacity due to drought, geopolitical complexities and harsh weather, further constraining South American economic development. 

The Chancay Port, strategically located on the Pacific Ocean, boasts natural advantages as a gateway to Asia. Yet, Peru's limited industrial base and port development capabilities hindered its progress. Fortunately, the BRI has fostered cooperation between China and Peru.

In 2019, the two countries signed a BRI cooperation memorandum, launching the Chancay Port project, to be implemented by Chinese company COSCO Shipping. Construction of the first phase began in 2021. With a planned capacity of 1 million TEUs in short term and 1.5 million in long term, it will establish Peru as a key Asia-Latin America land-sea gateway.

The port cuts shipping time to Asian markets from 45 to 23 days, lowering logistics costs by over 20 percent, according to official statistics.

The new route has emerged from scratch in just a few years, attracting international attention. In the eyes of Carlos Aquino, Director of the Asia Studies Center and professor of economics at the National University of San Marcos in Peru, "The port will be a game-changer for the economies of Latin America, particularly South America, and especially for Peru."

Far-reaching impact 

The port will boost connectivity within Latin America and beyond. Omar Narrea, researcher at the Center for China and Asia-Pacific Studies of the University of the Pacific in Peru, told Beijing Review that China's experience highlights three key elements for competitive economic corridors: infrastructure, special economic zones and industrial centers. Leveraging these insights, Chancay Port will drive South American economic corridor development and benefit neighboring countries. 

Connected to the Pan-American Highway via a tunnel, the Chancay Port offers direct access to Lima and other areas in Latin America, handling goods to and from Chile, Ecuador, Colombia, Brazil and Paraguay. This fosters regional development and integration.

The Peruvian Government is expediting plans for railway lines around the Chancay Port. On October 31, Peru's La Republica newspaper reported that technical research for the Central Bi-Oceanic railway, linking Chancay with the Brazilian jungle, is complete, and the project is now being considered for the 2025 public budget.

Even prior to the construction of Peru's port, China and Peru boasted a strong cooperative history. Peru was an early Latin American nation to establish diplomatic ties, form a comprehensive strategic partnership and ink a free trade agreement, with China. For a decade, China has been Peru's top trading partner and export market. According to November 14 data from China's General Administration of Customs, bilateral trade grew at an average annual rate of 14.6 percent from 2016 to 2023.

The impact of Chancay Port on regional development highlights the strength of Sino-Peruvian cooperation and its potential to inspire collaboration with other Latin American nations.

Brazil expects to use Peru's Chancay Port to improve the connectivity and the level of logistics of Brazil and the entire South America with China, Brazilian President Luiz Inacio Lula da Silva said on November 20 in talks with Chinese President Xi.

For the people 

Changes began on the day the port's construction commenced. Residents recall that before the Chancay project, Chancay city struggled with poor transportation and a lack of factories, relying mainly on farming and fishing. But with the port's infrastructure development, many locals have secured jobs, broadening their career opportunities. 

Juan Alberto Álvarez, Mayor of Chancay, said that for this small city with 65,000 residents, the port's first phase has already created direct jobs. Álvarez emphasized that the port will accelerate regional and global logistics, bringing significant economic benefits, job creation and development to Peru. The port is expected to generate $4.5 billion in annual revenue for Peru and over 8,000 direct jobs.

Today, Chancay's central square is alive with activity. Though China may be distant, Shanghai is a familiar name, thanks to the port's ability to ship products directly there and beyond. Chinese goods like new-energy vehicles, lithium batteries and solar panels flow into Peru through the port. The local people's heartfelt desire is to send Peruvian specialties like blueberries and avocados to Shanghai via the port, allowing these products to travel far and wide.

Environmentally friendly 

In the Santa Rosa wetland adjacent to the port, a flock of boobies soar in the sky. In the distance, the Andes Mountains stretch endlessly, and nearby houses are painted in vibrant colors.

For Chinese enterprises operating in Peru, project construction and environmental protection have always progressed in tandem, and they have never forgotten their social responsibilities. "The project team has carried out wetland protection, beach preservation, animal rescue and the construction of community facilities, earning the support of local residents," Huang told Beijing Review.

In early 2022, a volcanic eruption in Tonga caused tsunami that led to an oil spill at a Peruvian refinery. "Thanks to the breakwater built for the port project, the contaminated seawater did not spread further northward," Evelyn Lizbeth, the Health, Safety and Environment Manager at the Chancay Port, told Chinese newspaper People's Daily.

Huang's project team participated in oil spill cleanup and animal rescue efforts, cleaning beaches along the route and helping penguins, seals and other animals escape danger. On December 6, 2022, the Santa Rosa community kindergarten, repaired with project assistance, opened to the public with a new look.

"Chinese enterprises in Peru always shoulder their responsibilities, deeply participate in regional economic development and make greater contributions to building a China-LAC community with a shared future," Huang said. BR

(Printed edition: CHANCAY TO SHANGHAI)

Copyedited by G.P. Wilson 

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