Key Points The Chancay Port in Peru, inaugurated in November 2024 with a $3.5 billion investment, marks a pivotal development in South America’s trade infrastructure, driven by China’s Belt and Road Initiative. Operated by COSCO Shipping (60% Chinese-owned), the port’s first phase is operational, handling initial shipments of agricultural goods and minerals, with a projected capacity of 1.5 million TEUs annually. By 2030, it aims to reach 3.5 million TEUs, positioning Peru as a regional trade hub. The port is expected to contribute 0.9% to Peru’s GDP by 2025 ($2.25 billion) and create 8,000 jobs, while reducing shipping times to Asia by 10-20 days. Chinese firms dominate investment, raising concerns about Peru’s sovereignty, particularly after an exclusivity dispute. Parallel projects, like Brazil’s Interoceanic Highway upgrades, aim to connect Chancay to regional markets, potentially diverting 10-20% of Panama Canal traffic. Economically, Peru, Brazil, and Chile stand to gain, ...