China’s COSCO Shipping building $3.5 billion port in Peru
New Delhi:
China is building ports in South America to expand its influence overseas, which could further damage its relations with the U.S. The Wall Street Journal reports that Beijing is developing a deep-water port in Chancay, Peru, which is expected to be opened by President Xi Jinping later this year.
China’s COSCO Shipping is building a $3.5 billion port in the resource-rich region, which could boost trade between Asia and South America and open new markets for Chinese electric vehicles and other exports.
The port has a depth of about 60 feet, making it the first on South America’s Pacific coast that will allow large ships to enter, the WSJ reported.
But the port poses a challenge for the United States as it tries to contain China’s rise in Latin America, which fears that Chinese control of the port would give Beijing greater control over South America’s resources, the WSJ reported.
“That should be a concern because it makes it even easier for China to extract all these resources from the region,” Army Gen. Laura Richardson, head of U.S. Southern Command, told The Wall Street Journal.
Relations between the United States and China have fallen to their lowest level in decades, but the two countries have recently taken steps to re-engage diplomatically at a senior level.
“Peruvian ports will be windows to Asia”
Daniel Bustamante, who grows blueberries and avocados on Peru’s coast, told the Journal he hopes the port will open new Asian markets for fruit he currently ships mainly to Europe and the United States.
“This will be a window into Asia,” he told the Journal.
The current shipping route between Peru and China takes about 35 days, too long for most fresh produce to reach market, and the port of Chancay would help cut that time by a third, lowering business costs, the WSJ reported.
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The megaport is about 70 percent complete and is scheduled to open during the Asia-Pacific Economic Cooperation (APEC) summit in November, with Chinese President Xi Jinping in attendance.
New Chinese company wins port construction contract in Peru
Peru has also awarded a subsidiary of Chinese company Jinzhao a contract to build a port in the south of the country, with an estimated investment of $405 million. Construction of the port is scheduled to begin by the end of 2025.
As part of the deal, Jinzhao Peru will get the right to operate the port for 30 years, which will transport bulk cargo as well as iron ore concentrate and copper to restart mining projects worth a combined $15 billion, according to Reuters.
Notably, Peru is also one of the South American countries that have joined China’s Belt and Road infrastructure projects.
Peruvian president to visit China this month
Peruvian President Dina Boluarte is due to visit China later this month and meet with Chinese President Xi Jinping.
The two leaders are scheduled to meet on June 28.
She is also due to meet with executives from COSCO Shipping Group, Chinese telecoms equipment giant Huawei and electric car maker BYD.
Bolarte is also scheduled to meet with executives from Jinzhao Mining and infrastructure giant China Railway Construction Corporation (CRCC).
(Provided by agency)
