LIMA -- Visiting Chinese President Xi Jinping on Thursday inaugurated with Peruvian President Dina Boluarte a megaport, marking a milestone in China-Peru cooperation under the Belt and Road Initiative (BRI).

As a flagship BRI project, the Chancay Port is set to enhance trade efficiency between Peru and Asia, cutting shipping time to China to 23 days and reducing logistics costs by at least 20 percent.

Situated approximately 80 km north of the capital Lima on the Pacific coast and directly connected to the Pan-American Highway, a network of roads stretching across the Americas, the deepwater port is also poised to become a pivotal logistics hub between Latin America and Asia.

NEW TRADE OPPORTUNITIES FOR LATIN AMERICA

For Peruvian Transport and Communications Minister Raul Perez-Reyes, the vision for Peru is ambitious: "to become the Singapore of Latin America."

Located at the center of the Pacific coast of South America, Peru has long served as a bridge for trade across the Pacific, linking South America with Asia, particularly China.

With its Port of Callao already among the most significant in the region, Peru now sees the Chancay Port as a transformative addition that will enhance its position as a global trading hub.

With a draft depth of 16 to 18 meters, the new port is expected to handle over 1 million TEUs annually.

The TEU, or the twenty-foot equivalent unit, is a general unit of cargo capacity, based on the volume of a 20-foot-long (6.1 m) standard-sized container.

The impact on trade efficiency is expected to be profound. With the Chancay Port, "we will have direct routes to Asia, especially to China, which will reduce shipping times by 10, 15, even 20 days, depending on the route," Perez-Reyes recently told reporters at Chancay. Currently, shipping between Peru and Asia can take up to 40 days.

This is particularly significant for Peru as an agricultural export country. "For example, it used to take 34 days for Peruvian mangoes to reach China, by which time they were already very ripe," Peruvian Minister of Agriculture and Irrigation Angel Manuel Manero told Xinhua.

"Shorter shipping times will help maintain their freshness," he said.

Peruvian officials and experts see the Chancay Port as a step toward redefining South America's role in global trade, making it easier for Peru and neighboring countries to export goods across the Pacific.

This new port will encourage trade between Peru, Chile, Argentina, Brazil, and other Latin American countries with Asian countries including China, said President of the Congress of Peru Eduardo Salhuana, adding that it promises economic growth for Latin America's agriculture, mining, and manufacturing industries.

The Brazilian government has already signaled a keen interest in the Chancay Port, viewing it as a vital link to Asian markets.

In a March meeting with Peruvian officials, Joao Villaverde, Brazil's secretary for institutional coordination at the Ministry of Planning, pointed to the importance of the port. "As we get closer to the Pacific (through the Chancay Port), we also get closer to Asia and China in particular," Villaverde said.

Since 2009, China has been Brazil's largest trading partner, and data from China's Ministry of Agriculture and Rural Affairs has shown that Brazil continued to be China's largest source of agricultural imports in 2023.

"But Brazil has to go all the way and down through the Atlantic," said Carlos Aquino, director of the Center for Asian Studies at Peru's National University of San Marcos.

Through the Chancay Port, Latin American countries, including Peru and Brazil, will be able to sell more goods to China, Aquino said.

FINDING AN EQUAL PARTNER IN CHINA

In Spanish, Chancay and Shanghai have similar pronunciations. With the Chancay Port project advancing in recent years, local media have embraced the phrase "from Chancay to Shanghai" to capture the vision of a new land-sea corridor linking Latin America to China.

Speaking at the inauguration ceremony of the Chancay Port via video link with his Peruvian counterpart, Xi noted that this connection means more than just the BRI taking root in Peru.

From Chancay to Shanghai, we are witnessing the birth of a new Asia-Latin America land-sea corridor, Xi said.

The Chancay Port will strongly consolidate Peru's position as a gateway that connects land and sea, Asia and Latin America, Xi said.

Xi called on both sides to adhere to the principles of extensive consultation, joint contribution and shared benefits, and empower the Pacific Rim economies, including China and Peru, to pursue common development.

Peruvian President Boluarte said at the inauguration ceremony that this Peru-China BRI project marks a crucial step toward Peru's goal of becoming an international center for shipping and trade.

It will help Peru establish itself as a crucial gateway connecting Latin America and Asia, while also fostering integration and prosperity across Latin America, she said.

Projections indicate that the Chancay Port will generate 4.5 billion U.S. dollars in yearly revenues for Peru and create over 8,000 direct jobs.

Jorge Chain, general manager of the Peru-China Chamber of Commerce, said that China has long been Peru's primary trading partner, describing the Chancay Port project as a prime example of "beneficial and mutually advantageous cooperation."

While Chinese investments in Latin America have largely been welcomed by local governments and communities, they are often smeared by the West as being "neo-colonial." The Chancay Port project is no exception.

"The (Chancay Port) project was offered to many Western countries, including the United States," said Juan Carlos Capunay, former Peruvian ambassador to China.

"If they are worried about the so-called Chinese influence, the answer is simple: invest in Latin America. But they do not invest," said Capunay, noting that Latin America cannot wait indefinitely for the West to decide to engage economically.

"We need to develop, and China is open to work with us," he said.

Describing Peru as "one of the main enthusiastic proponents of the BRI," Capunay said that China does not impose conditions or political systems on its partners.

"Each country chooses its own priorities. That is why so many countries feel comfortable with the BRI," he said.

Capunay contrasted this with Western investments, which, he argued, are dictated by terms set by the West.

"They (the West) decide when, how, and where to invest, and they set the priorities. It is not an equal relationship," he said. With China, however, "there is an equal relationship. That is why there are more and more people interested in getting in business with China."