The $3.6 billion Chinese-funded Chancay port project in Peru, US concerns around it

The $3.6 billion Chinese-funded Chancay port project in Peru, US concerns around it

Sub : IR

Sec: Places in news

Context:

• The Chancay Port in Peru was recently inaugurated by Chinese President Xi Jinping.
• The port is envisioned as a starting point for a new land-sea corridor connecting China and Latin America.

Chancay Port Project:

• Chancay is a natural deep-water port in Peru, located about 78 km north of Lima.
• The $3.6 billion project is funded under China’s Belt and Road Initiative (BRI).
• China Ocean Shipping Company (COSCO) owns 60% of the port, with a local company holding the remaining share.
• Key trade items here include copper, blueberries and soybeans.

Key benefits:

• The port has the capacity to receive vessels of up to 18,000 TEUs (Twenty Foot Equivalent Units), the largest shipping vessels in the world. Currently, to reach South America, bigger cargo ships first go to ports in the United States or Mexico and their goods are offloaded onto smaller ships.
• Shortens shipping time between Latin America and Asia from 35 days to 25 days.
• The port is expected to generate $4.5 billion in annual economic benefit for Peru, equivalent to 8 percent of the country’s GDP.