CHINA’S president Xi Jinping and his Peruvian counterpart Dina Boluarte on Thursday inaugurated the mega port project in Chancay via video link, launching the first logistics hub operated by a Chinese company in Latin America.

During the launching ceremony in Lima, Xi said that the deepwater port serves as the starting point for the new land-sea corridor linking China and Latin America, and also marks a significant step for China’s Belt and Road Initiative.

Boluarte stated that with the new port, Peru would embark on a transformation towards becoming “a world-class technological and industrial centre,” strategically propelling the country’s link with the Asia-Pacific region.

The Chancay Terminal, featuring a maximum depth of 17.8 metres, was constructed by Cosco Shipping Ports with a $1.3bn investment for its initial phase, and the total investment is expected to reach nearly $36bn. The construction started in 2021.

It can accommodate large container ships of up to 18,000 teu, with a designed long-term annual throughput capacity of 1.5m teu.

When completed, the Chancay Terminal will help establish a direct passage between the west coast of South America and China, providing an important alternative for bilateral trade in minerals, agricultural goods, and industrial products that bypasses the Panama Canal.

The first phase of the port project shortens the shipping time from Peru to China to 23 days, saving more than 20% in logistics costs, bringing in $4.5bn in revenue for Peru each year, and creating over 8,000 jobs, Xi said in a signed article published Thursday in Peruvian media outlet El Peruano, titled ‘China-Peru friendship: setting sail toward an even brighter future’.

He arrived in Lima on Thursday for a week-long diplomatic tour, attending the 31st APEC Economic Leaders’ Meeting and visiting Peru. Then he will visit Brazil and participate in the G20 summit in Rio de Janeiro.