China opens direct shipping route to South America

China's Guangzhou Port, the largest shipping hub in the country's south, announced the launch of a direct route to Chancay Port in Peru.

This new route, reported by China's state broadcaster CCTV, is expected to reduce logistics costs and enhance trade with Latin America.

Chancay Port, located north of Lima and constructed by COSCO Shipping Ports with an initial investment of $1.3 billion, can accommodate the largest vessels on South America's Pacific coast.

The direct route to Peru takes approximately 23 days and is projected to cut logistics costs by around 20%.

This development will expedite the connection between Guangzhou Nansha Port and other Latin American ports, including Mexico's Port of Manzanillo and Chile's Port of San Antonio.

The route is anticipated to boost exports of household appliances, electronic products, furniture, and toys to Latin America. Conversely, high-quality fruits, seafood from the Pacific coast, and red wine from the Andes will reach China more swiftly.

This aerial photo taken on June 16, 2022 shows the fully-automated pier at the Nansha port in Guangzhou, south China's Guangdong Province. (Xinhua/Lu Hanxin)

Since its opening on 14 November, Chancay Port has handled nearly 60,000 containers and aims to establish itself as a new trade hub between South America and Asia.

China has become the second-largest trading partner of Latin America, following the signing of the first free trade agreement between China and Latin American countries 20 years ago.

The trade volume between China and Latin America has grown from around $12 billion in 2000 to approximately $500 billion in 2024, according to Customs data.

The new route directly connecting Chancay Port in Peru, operated by COSCO Shipping Ports Limited, is an important project under the joint construction of the Belt and Road Initiative between China and Peru.

Serving as South America's first smart and green port, the operation of Chancay Port is seen as a model of infrastructure cooperation between China and Latin America, helping shorten the sea transportation time between Peru and China to 23 days, saving over 20 percent in logistics costs.