COSCO SHIPPING Invests US$3 Billion in New South American Port

According to foreign media reports, China COSCO Shipping Group will invest US$3 billion in Peru to build Chancay Port, COSCO Shipping’s first deep-water port in South America. The project also includes a 1,100-hectare industrial and logistics park.

According to the plan, the port of Chancay can dock the world's largest container ship and will handle 1.5 million TEUs and 6 million tons of cargo each year. Currently, the largest port in South America is the Port of Colon, which is capable of handling around 4.5 million TEUs per year.

As early as 2020, COSCO SHIPPING and Peruvian mining company Volcan established a joint venture to build the port of Chancay. Xu Lirong, the former chairman of COSCO SHIPPING, once said that the construction of Chancay Port is an important investment and will become a model under the framework of the Belt and Road Initiative in the future.

This project is already in full swing. In addition to COSCO Shipping, China Railway, China Communications Construction and China Harbour Engineering have all been put into the construction of the new port. The first terminal is expected to be completed within a year.

Currently, COSCO Shipping is behind Maersk in the number of trans-Pacific routes on the West Coast of South America. After the new port is up and running, COSCO Shipping's market share is expected to grow regardless of whether the port itself makes money.

Source: Port Circle