China’s Cosco Shipping is building a $3.5 billion port in Peru
New Delhi:
In a bid to expand its clout overseas, China is building a port in South America that could further dent its relations with the US. According to a report in The Wall Street Journal, Beijing is developing a deep-water port in Peru’s Chancay which is likely to be inaugurated by Chinese President Xi Jinping later this year.
China’s Cosco Shipping is building the $3.5 billion port in the resource-rich region that may bolster trade between Asia and South America and open new markets for Chinese electric vehicles and other exports
It will also be the first port on South America’s Pacific coast that will be able to receive mega ships because of its nearly 60 feet of depth, the WSJ report said.
The port, however, has posed a challenge for the US that seeks to stop China’s rise in Latin America. The US is worried that China’s control over the port will allow Beijing to further strengthen its grip over South America’s resources, the WSJ reported.
“This will further make it easier for the Chinese to extract all of these resources from the region, so that should be concerning,” Army Gen. Laura Richardson, who heads the US Southern Command, was quoted as saying by The Wall Street Journal.
The relations between the US and China have sunk to their lowest point in the past few decades with the two nations recently taking steps to reengage at high levels diplomatically.
“Peru Port Will Be A Window Into Asia”
Daniel Bustamante, who grows blueberries and avocados on Peru’s coast, told the WSJ that he expects the port will open new Asian markets for his fruits, which he currently now mostly ships to Europe and the US.
“This will be a window into Asia,” he told the WSJ.
The current shipping routes between Peru and China are about 35 days and takes too long for most perishable foods to reach markets. The port in Chancay will help cut that time by a third and reduce business costs, the WSJ reported.
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The megaport is around 70% complete and is expected to be inaugurated during the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in November, with Xi Jinping in attendance.
Another China Firm Gets Port Construction Contract In Peru
Peru has also awarded a subsidiary of Chinese firm Jinzhao a contract to build a port in the south of the country, expected to require $405 million in investments. The construction of the port is expected to begin by the end of 2025.
As part of the deal, Jinzhao Peru will receive a concession to operate the port for 30 years. The port will transport bulk goods as well as an iron concentrate and copper and in total, it will reactivate mining projects worth $15 billion, according to Reuters.
Peru, notably, is also among the number of South American nations that have signed up for China’s Belt and Road Initiative infrastructure project.
Peru President To Visit China This Month
Peru President Dina Boluarte will travel to China later this month to meet with her Chinese counterpart Xi Jinping.
The two leaders are scheduled to meet on June 28.
She is also expected to meet with executives from Cosco Shipping Ports, Chinese telecoms giant Huawei, and electric carmaker BYD.
Boluarte is also scheduled to meet with executives from Jinzhao Mining and with the infrastructure giant China Railway Construction Corporation (CRCC).
(With agency inputs)
Source link : https://www.ndtv.com/world-news/chinas-new-port-in-south-america-in-perus-chancay-may-further-dent-relations-with-us-5886326
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Publish date : 2024-06-13 22:23:51
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