In Peru, Xi Jinping inaugurates a Chinese port, a stop on the Silk Roads in the region

At the megaport of Chancay, in the small town of Chancay, 78 kilometers north of Lima, October 29, 2024. CRIS BOURONCLE / AFP The Peruvian capital, Lima, barricaded itself to receive heads of state and representatives of twenty and an Asia Pacific Economic Cooperation (APEC) country on November 15 and 16, including US President Joe Biden and Chinese President Xi Jinping. The metropolis mobilized 13,000 police officers and declared three public holidays, starting Thursday, November 14, to limit the movement of 10 million residents. Some 600 American soldiers are also present, while the population takes advantage of the summit to denounce the violence of gangs linked to drug trafficking. In Lima, this year, the Chinese president will have the honors of the host country: Xi Jinping is also making a state visit, which was to begin Thursday with the inauguration, remotely, of a gigantic deep-water Chinese port, in Chancay , a small town located 75 kilometers north of the capital. A simple fishing port until six years ago, the site attracted the Chinese shipowner Cosco Shipping Ports, thanks to its 18 meters of depth which will accommodate the largest cargo ships, transporting up to 18,000 containers at a time. . Installed on 141 hectares, the port has already cost 1.3 billion dollars (1.2 billion euros) to a consortium of which Cosco holds 60%, with the Peruvian mining operator Volcan, and could, in the long term, represent a investment of 3.5 billion dollars in the city of 60,000 inhabitants. It would then become one of the leading ports in Latin America. And a showcase for the “new silk roads”, this vast economic-diplomatic project which sets the course for Chinese investments abroad, mainly in infrastructure. Provided it is a success. “Real economic needs” Because the ambitious project, which represents 1.3% of Peruvian GDP, is reminiscent of certain “white elephants”, these projects that are too heavy for the developing countries that have received them to bear. Chancay, despite its high cost, should avoid this pitfall: “It was not a political project. Initially, the request came from mining companies, Chinese, and non-Chinese, which already had investments in Peru. This meets real economic needs, explains Bruno Binetti, researcher at the London School of Economics, and author of a thesis on Chinese investments in Latin America. Read also (in 2023)| Article reserved for our subscribers “In China, the “new silk roads” are adopting a less spectacular but perhaps more sustainable cruising speed” Read later Other progress compared to certain “new silk roads” projects, Chancay will move forward in several phases, with four docks opening this year, and up to fifteen which may be built depending on future demand. “The final project is very ambitious, but construction has not yet started: this approach is increasingly common for Chinese companies in Latin America: they are more cautious and carry out serious market studies,” specifies Mr. Binetti. Mineral exports should already ensure the viability of the port, believes the researcher. Peru is the world’s second largest producer of copper, 67% of which goes to China. You have 53.66% of this article left to read. The rest is reserved for subscribers.



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