China Extends Belt and Road Project to South America

Cin Expands Belt and Road Project to South America
China Extends Belt and Road Project to South America

Chinese company Cosco is completing the construction of its first port in South America in Peru. The $3 billion construction site will enable China to establish a strategic center in this continent as well. After Asia, Europe and Africa, China also weaves its Silk Road networks in South America. Chinese public enterprise Cosco Shipping is finishing the construction of a new tanker port on Peru's Pacific coast, which is scheduled to receive its first cargoes and container carriers within a year. Cosco Shipping, which already operates in 35 ports around the world, will thus have its first facility in South America. This port will enable China to acquire a center for the Silk Road in this continent as well.

The construction site, which was established in 2019, represents an investment amount of 3 billion dollars. But Cosco didn't come alone to build a giant plant from scratch in Chancay, 55 kilometers north of Peru's capital, Lima. A giant industrial and logistics center will be created from the empty land by participating in the project, which is carried out with the Swiss company Glencore, which trades in raw materials. Meanwhile, south of Lima is a large port operated by Cosco's rivals, Denmark's APMöller-Maersk and Dubai DP Sorld. After the new port is completed, it will create a similar giant center in the same region.

Beijing already operates Peru's two largest copper mines through public enterprises. However, although copper is a very important raw material in ecological transformation technologies and China is one of the most important buyers of this raw material, not only copper will pass through Chancay. Cosco's priority is to finish building infrastructure for shipping containers and agricultural products. The aim of the company is to gain a share in the transit market to Latin America, beyond making an efficient trade.

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