On November 14, 2024, the Chancay Multipurpose Port in Peru officially commenced operations, with Chinese President Xi Jinping attending the grand event. This marks a new milestone in bilateral cooperation between China and Peru, as well as a significant achievement under the Belt and Road Initiative. As a foreign trade company specializing in sewing machine exports, we recognize the positive and far-reaching impact of this development.
Overview of Chancay Port: Geographical Location and Characteristics
1.Phase One of Chancay Port Project
The first phase of the Chancay Port project began in 2021. The port boasts strong handling capacity, with four berths at the quay capable of accommodating the world’s largest cargo ships.
As a natural deep-water port, it features a maximum water depth of 17.8 meters, enabling it to berth ultra-large container ships of 18,000 TEUs. The port is designed to handle 1 million TEUs annually in the near term, with the potential to scale up to 1.5 million TEUs in the future.
2.Economic Benefits and Job Creation
The construction of Chancay Port provides a significant boost to Peru’s economy, generating economic benefits equivalent to 1.8% of the country’s annual GDP. During its construction phase, the project is expected to create approximately 1,300 direct jobs and 8,000 indirect jobs.
3.Investment and Strategic Collaboration
The total investment in the Chancay Port project amounts to $3.6 billion, with $1.298 billion allocated for the first phase. Chinese enterprises have played a major role in its development.
In 2019, COSCO Shipping strategically invested $225 million to acquire a 60% equity stake in the port. This investment also granted COSCO a 30-year exclusive operation right, which commenced in 2021.
Significance for the Foreign Trade Industry
1. Enhanced Trade Efficiency Between China and Peru
In the past, most of the freight between Peru and Asia or Oceania was generally transported via Central and North America. With the opening of the Peruvian Port of Chancay, the shipping time from Peruvian Port of Chancay to China has been shortened to about 23 days, and the shipping time from other major ports in Peru (such as the Port of Callao) to China is about 35-40 days. Peruvians even expect that the cost of transporting goods between Peru and China may be reduced by half.
The completion of the port will greatly improve the efficiency of shipping between China and Peru, saving more than 20% of logistics costs. Its modern facilities will greatly improve the efficiency of cargo loading and unloading, shorten customs clearance time, and reduce logistics costs.
This provides a more efficient and convenient shipping solution for Chinese export goods, including sewing machines, helping to further expand the competitiveness of Chinese products in Peru and neighboring markets.
2. Deepened China-Latin America Economic Cooperation
The inauguration of the port symbolizes a deeper level of economic collaboration between China and Latin America. For foreign trade enterprises, this translates into broader markets, richer cooperation opportunities, and more diversified trade routes.
3. Driving Regional Economic Growth
The Chancay Port is expected to boost the economic development of surrounding regions, create more business opportunities, and stimulate consumption growth. For our company, this presents new market demands and growth potential for sewing machines and other industrial equipment.
Significance for the Sewing Machine Industry
1. Expansion of the South American Market
Peru and the Latin American region have always been key areas of focus for KOLEEX. The port’s opening facilitates smoother logistics channels, enabling us to deliver products to our customers faster and more efficiently, thus improving service responsiveness.
2. Lower Transportation Costs and Increased Profit Margins
The efficient facilities and reduced logistics costs allow us to offer products to customers at more competitive prices while optimizing profit margins. This enhances our market competitiveness and attracts more potential customers.
3. Promoting Industry Upgrades and Innovation
The opening of Chancay Port also presents an opportunity for our company to leverage the strengthened China-Peru cooperation. We will continue to enhance product quality, develop, and promote advanced sewing equipment to meet the diverse needs of our customers.
Conclusion
Today, the annual trade volume between China and Latin America is nearly US$500 billion. China is Latin America's second largest trading partner and the largest trading partner of Brazil, Chile, Peru and other countries.
The opening of Chancay Multipurpose Port not only writes a new chapter in China-Peru cooperation but also injects strong momentum into the foreign trade industry. As a company committed to providing high-quality sewing machines to global customers, KOLEEX will seize this opportunity to accelerate the expansion of the South American market. In the future, we look forward to sharing the vision of win-win cooperation with more countries and regions under the guidance of the Belt and Road Initiative.
Publisher: KOLEEX News Editorial Department
Publication Date: November 19, 2024
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