Percy Perez (1:46)

We started growing raspberries and blackberries here as a bit of an experiment to see how they do as well as producing fruit to sell locally here in Peru. We want to use the port to export more because it's good for business and Asia will be our principal market.

Jane Chambers (2:01)

And it's not just local businesses that are benefiting. The BBC's Ritika Gupta visited a year ago.

SAP Concur AI Assistant (2:07)

This port, majority owned by China's Cosco Shipping, could transform global trade. It's redirecting shipping routes and would allow China to increase its presence in Latin America, a region the US has long considered its own backyard.

Jane Chambers (2:22)

Since then, the port's continued with ambitious plans to be the regional hub, but for imports and exports across Latin America. From January to October this year, the port processed roughly US$1.88 billion in imports and exports. We'll find out what's giving it the edge. How local fruit producers are particularly Benefiting and what obstacles still need to be overcome, both politically and logistically. That's all coming up in Business Daily on the BBC World Service. So where are we going now? Donde vamos?

Kevin Avellaneda (2:58)

Okay. Estamos nosotros ahorita en el quinto piso.

Jane Chambers (3:07)

That's proving Kevin Avellaneda, the public affairs spokesperson at Costco Shipping, he's giving me a tour of the port. We're on the fifth floor of the headquarters, which is filled with huge screens showing shipping routes between Chiang Kai port and Asia. These new routes have one important advantage.

Port Representative (3:31)

Before, it could take 40 to 50 days for goods from Latin America to cross the sea and reach Asia. Now, with these cosco routes, you can go from Shanghai to Shanghai in 23 days and from Shanghai to Shanghai in 25 days. So that's much quicker than before. Which means if you want to export goods to Asia, this port is the best option.

Jane Chambers (3:59)

Out on the windy balcony, we take in the sights. So we've got an amazing view in front of us. We've got various cranes and containers.

Kevin Avellaneda (4:08)

Mira estas?

Port Representative (4:10)

Yes. Look, you're in a port which is going to be the most important in Latin America, which is just 80 km from the capital Lima.

Jane Chambers (4:18)

I can see containers in front of me stretching out. What kind of things are in those containers?

Kevin Avellaneda (4:24)

Nosotros estamos embiando arena e pescados.

Port Representative (4:29)

We're sending things like fish meal and fruit to Asia and we're importing technology and vehicles. In 2025, we imported more than 18,000 vehicles that have just arrived to Peru. And we're also importing from Shanghai things like electric buses which. Which are then sent to Chile, which is a much cheaper way for them to import them than by doing it elsewhere because of the shorter shipping times.

Jane Chambers (4:57)

Kevin's keen to point out that this port is a smart green port built with cutting edge technology and automation.

Kevin Avellaneda (5:04)

The name of Veecolos automatizados que nos permitten traer la carga ilecum poco.

Port Representative (5:12)

The ship arrives to the deep harbour port and the crane takes the goods to an electric autonomous truck which doesn't need a driver. This new technology makes us more energy efficient. We're not at full capacity yet and we still have different stages to go through. But there are only three ports like this in the world. Two in China and this one here.

Kevin Avellaneda (5:39)

Okay.

Jane Chambers (5:46)

In the lift. Kevin explains that just over half their workforce are local. We're off to meet one of them. Cony Chavez Otado.

Cony Chavez Otado (5:56)

I operate one of the cranes remotely from here in the Main building I used to be an accountant, but I thought this would be a good opportunity to learn new things. So I applied for the job and they trained me up to be able to do it.

Jane Chambers (6:11)

What do you like about your job? What do you have to do?

Cony Chavez Otado (6:17)

The crane is completely automatic, but as a trained technician, I monitor and manage the automated systems from this control room. It is a bit like playing a video game. We have things like joysticks and screens to oversee the process of loading and unloading the containers.

Jane Chambers (6:31)

If you ever get worried you might drop something.

Cony Chavez Otado (6:35)

At the start. I did, but I'm getting less scared. Of course, we are always very careful about what we are doing. Looking at the cameras and following all the instructions.

Jane Chambers (6:49)

I've come to somewhere else much greener than the arid landscape between Lima and Chiang Kai. Horale is known as the capital of agriculture in Peru. The region's a vital food supplier for Lima and much of the rest of the country. But now local producers like Percy Perez want to expand.

Percy Perez (7:10)

Raspberries are one of the berries that are most consumed in the world. We started growing raspberries and blackberries here as a bit of an experiment to see how they do as well as producing fruit to sell locally here in Peru. We. We want to use the port to export more because it's good for business. We're also planning to buy more land so we can produce more and Asia will be our principal market.

Jane Chambers (7:35)

Percy also has blueberries and dragon fruit. He explains that he's a small producer and doesn't use containers in the port directly, but relies on the growing infrastructure.

Percy Perez (7:52)

There are lots of warehouses being built in the region to service the port, which is good for local employment. As a fruit producer, I'm happy because they're also building packing centers to take our fruit for export. We don't have packing facilities because it's expensive. So we're happy that we can sell our produce to one and get a good price because the shipping times to Asia are faster now. It means that new markets are opening up to us. We used to just export to the United States because it's closest, but now Asia is an option and. And in the middle to long term that's going to give us lots of benefits.

Jane Chambers (8:31)

And the new port means that Percy is also expanding his business into other areas behind us. There are rows of brightly coloured flowers, including red and pink dahlias.

Percy Perez (8:47)

Everything is changing too rapidly here. People are starting to buy land for second homes in the countryside. Here they are. There's a lot of investment from other parts of Peru. And that's a great opportunity for us because we can landscape their gardens for them, selling them the flowers, trees and grass. So we're always on the lookout for all the opportunities this new port can give us.

Jane Chambers (9:10)

But although Percy's businesses are thriving, Peru is facing political uncertainty. In the weeks leading up to my visit, there were protests in Lima and the former president Dina Boluate was ousted from office. And a state of emergency was declared, which means military in the streets of Lima. Because of worries about rising crime, I asked Percy how that affects his business.

Percy Perez (9:43)

The political situation in Peru is complicated, but. But in the last two decades, with so many changing presidents, we've learnt not to rely on the government. We, as small and medium producers, depend on our hard work. The government doesn't invest in us. We do everything in our power to grow. We would like more help and sometimes the bureaucracy slows things up. But we are doing everything that we can to get ahead.

Jane Chambers (10:13)

Bersu Beddes, you're listening to Business Daily from the BBC World Service.

SAP Concur AI Assistant (10:20)

Hey, let's talk about your expense report.

Kevin Avellaneda (10:22)

I didn't submit an expense report.

Jane Chambers (10:24)

You will.

SAP Concur AI Assistant (10:24)

Custom saddles and dog training services are not within policy.

Kevin Avellaneda (10:27)

What are you talking about?

SAP Concur AI Assistant (10:28)

SAP Concur uses advanced AI to audit and automatically detect out of policy expenses. It's the breakthrough I needed to focus more on our future.

Kevin Avellaneda (10:37)

These are my future expenses?

Percy Perez (10:39)

Yes.

SAP Concur AI Assistant (10:39)

And self defense classes are out of policy.

Kevin Avellaneda (10:41)

I'll need self defense classes.

Jane Chambers (10:43)

You will?

Percy Perez (10:43)

For what?

SAP Concur AI Assistant (10:44)

It's a big dog.

Kevin Avellaneda (10:45)

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Jane Chambers (11:53)

I'm Jane Chambers in Peru, finding out how a megaport is triggering the country and region's economic growth and opening up new markets. Back in Chiang Kai, I've come to a castle. It's full of school children and tourists enjoying tours. That's Jorge Lopez, the general manager of the theme park at Chiang Kai Castle. He's stopped to greet one of the younger visitors while he takes me on a guided tour. The castle used to be in ruins and now it's been transformed.

Kevin Avellaneda (12:26)

El Castillo de Chancay es el attractivo turistico uno de los mas importantes del Peru.

Jorge Lopez (12:34)

This is a really big tourist attraction in Peru. We're on top of a rocky cliff with museums showing things like local ceramics from the Changhai culture and replicas of some of the important landmarks in the world, like Machu Picchu and Big Ben. We also have a great view of the new port, which is in front of us around a kilometer away.

Jane Chambers (12:55)

He says that the megaport is helping attract more visitors.

Jorge Lopez (13:07)

We at Shanghai Castle, as well as other businesses in the region, see the megaport as an opportunity. We've seen more visitors since the port officially opened in 2024. The economy is growing. The port's still not operating at 100% of its capacity, but. But in spite of that, we've had visitors from China and delegations from around Latin America. Places like Chile, Bolivia, Colombia, Brazil and Ecuador. Nearly every week we have visits from people who are here to start doing business with the port or looking at other business opportunities related to the port, whether that's something related to manufacturing or logistics.

Jane Chambers (13:48)

But Jorge says this growth needs support.

Jorge Lopez (13:59)

The business community is waiting for the government to approve the urban development plan for Shanghai. We need warehouses, places for industry so that we're ready for more investment. Shanghai is a small town with currently around 60,000 inhabitants. And because of the port, there are predictions that the population will triple. So the city needs to be properly prepared with things like more hospitals and health services and more police and security. We need better communication services and road planning. There are different services that need to be installed.

Jane Chambers (14:35)

For the port to reach its full potential. It's not just local infrastructure that needs improving. Back in the capital, Lima, I talked to Carlo Cecchino. He's an economist and the director for the Centre of Asian Studies at San Marcos National University.

Kevin Avellaneda (14:50)

Really, if we really want to take advantage of Chiang Kai and really make a logistics hub in South America, we.

Jane Chambers (14:57)

Need highways Cardos says there's already a highway connecting Peru with Brazil. But to be more efficient, they need another type of transport.

Kevin Avellaneda (15:05)

We need to bring the cargo from Brazil, from Argentina, Paraguay. But for that we need railways. It is proof that the railway is the easiest and cheaper way to bring cargo. The biggest hope is the so called bioceanic railway linking Chancai port with Brazil. Of course this is a big project. It's going to take 5, 10 years at least it's going to invest $10 billion, even more.

Jane Chambers (15:31)

But he thinks it will be worth it.

Kevin Avellaneda (15:32)

Linking Peru with our neighbors, with Brazil, that is the biggest market. You know, half of what China imports from Latin America is just from Brazil. And this is going to increase. So the big hope is that direct link with Asia, but also through the development of the highway railway. Really, really. Peru will be the gateway for Asia and Latin America.

Jane Chambers (15:55)

Carlos explains that Peru has always had historical ties with China.

Kevin Avellaneda (16:00)

Peru's relationship with China is very strong. I will say that in Latin America, Peru have the more strongest link with China, not only in the economic aspect. For example, we were the first country in Latin America to receive large scale Chinese immigration. They came from 1849 to work in the land state for growing sugar, cotton and then to build the central railway. That's why that is the reason that Peru is home to the largest Chinese community in Latin America. It is estimated that probably 5, 10% of Peruvian population has Chinese origin. Then in 1874, Peru was the first country in Latin America to establish diplomatic relationship with China. Of course, at that time was the Qing Empire.

Jane Chambers (16:45)

Okay. And he points out this strong relationship has continued. And these days it's seen in trade.

Kevin Avellaneda (16:52)

2024, 32% of all trade with the world was with China. And this trend is going to continue for a very long simple reason. We have what they need. They need raw materials, minerals, energy goods, they need food and we need machinery, we need consumer goods and they produce that. So I think also given the structure of a Peruvian economy, you know, more than 70, 80% of our export as raw material. The natural market for us is China. I think China is the biggest investor in Peru. 25% of all Chinese of all foreign investing in Peru is from China around we're talking about 32, 33 billion dollars. So the relationship is very strong in the political aspect.

Jane Chambers (17:42)

That's something which is unsettling geopolitics in the region. China has a Belt and Road initiative launched by the government in 2013 to connect Asia with the rest of the world. The project aims to Strengthen China's global influence and economic position by investing in projects like ports, highways, railways and fibre optic networks across more than 150 countries. Part of that initiative is Chiankai Port which as I mentioned earlier is owned and run by China's state owned shipping company Cosco Shipping. The Chinese President Xi Jinping and former Peruvian President Dina Boluate jointly inaugurated Chiang Kai Port in Peru on November 14, 2024. China's now Latin America's top regional trading partner. And there's some speculation that this is triggering trade tensions with the United States and President Donald Trump. There was talk when the port opened that he sees it as a threat and and might slap tariffs on goods using the port. I asked Carlos his thoughts.

Kevin Avellaneda (18:50)

If you are worried about Chinese investment in Peru, you know regarding Chiang Kai port, probably you have listened in Arequipa there is a place called Koryo that they have a bigger deep water port. The traffic is 30 meters deeper than the Chiang Kai port. So they could build a bigger port than Chiang Kai. So it's up to them. We're open to business. We don't favor any country. Peru is open to business and we hope to receive investments from anywhere. We should not become dependent on China. We have to open our market for any country. But the port of Shanghai will be an opportunity because the ships will not go in a shorter time to China, but also to Japan, to Korea, to India and India is going to begin a big market. So we hope in Peru the political class realize that China is a very big partner. It's going to be. But of course we need to wide our horizon of more trade partners really became not dependent in any country.

Jane Chambers (19:47)

That's all from Business Daily. Thanks for listening. I'm Jane Chambers and if you enjoyed the programme and want to hear more episodes, search for Business Daily. Wherever you get your BBC podcasts.

Jorge Lopez (20:20)

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Kevin Avellaneda (20:22)

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Jorge Lopez (20:25)

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Kevin Avellaneda (20:31)

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Kevin Avellaneda (20:39)

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