Why in the News?

The Chancay Port was inaugurated in Peru by Chinese President Xi Jinping.

About Chancay Port Project:

The Chancay Port Project was inaugurated in Peru as part of a new land-sea corridor linking China with Latin America.
It is funded under Belt and Road Initiative (BRI), with a total cost of $3.6 billion.
The port can accommodate vessels up to 18,000 TEUs (twenty-foot equivalent unit), the largest shipping vessels in the world.
Ownership: 60% of the port is owned by China Ocean Shipping (Group) Company (COSCO), with the remaining stake held by a local company.
It is expected to generate $4.5 billion annually for Peru, equivalent to 1.8% of the country’s GDP.
Key Exports: The port will handle exports like copper, blueberries, soybeans, and lithium from the lithium triangle (Bolivia, Chile, and Argentina).

Proximity to Lima: Located 78 km north of Lima, Peru’s capital, in the small fishing town of Chancay.
Natural Deep-Water Port: Chancay is a natural deep-water port, ideal for accommodating large vessels.
Trade Gateway: Positioned strategically to facilitate trade between South America and Asia, reducing transit time for goods between the two continents.
Alternative to North America: It eliminates the need for Latin American exports to transit through ports in North America, offering a more direct route to Asia.

Chinese Influence in Latin America: The US has traditionally viewed Latin America as its sphere of influence. The Chancay Port increases China’s economic and geopolitical presence in the region.
Strategic Gateway for China: The port strengthens China’s access to critical resources in South America, including lithium and copper, raising concerns about China’s growing dominance in the region.
US Trade Routes Disruption: The port reduces transportation time between Latin America and Asia, which could disrupt existing US trade routes and diminish its role as a trade facilitator.

[2017] What is the importance of developing Chabahar Port by India?

(a) India’s trade with African countries will enormously increase.

(b) India’s relations with oil-producing Arab countries will be strengthened.

(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.