Business Daily (BBC World Service)

Episode: How Peru's Chancay Port is Changing Trade

Air Date: December 17, 2025
Host: Jane Chambers

Overview

This episode of Business Daily explores the transformation brought by Peru’s newly constructed Chancay Port—a $3.5 billion joint venture between China’s state-owned Cosco Shipping and Peru’s Volcan mining company. Jane Chambers visits the port and nearby businesses, showcasing its impact on local economies, Latin American trade routes, and global geopolitics. The episode uncovers how Chancay is positioning Peru as a major logistics hub, how local producers are benefitting, and what challenges remain.

Key Discussion Points and Insights

1. The Scale and Impact of Chancay Port

• Chancay Port is touted as a "game changer for Peru, for Peru's economy, and for Peru's position in South America." (Kevin Avellaneda, 01:22)
• The port serves as a regional trade hub, facilitating imports and exports across Latin America and Asia, with $1.88 billion in trade processed from Jan–Oct 2025. (Jane Chambers, 02:22)

2. Transforming Shipping Routes

• Shipping between South America and Asia is significantly faster:

  “Before, it could take 40 to 50 days... now... Shanghai to Chancay in 23 days, and Chancay to Shanghai in 25 days.”
  (Port Representative, 03:31)

• The port enables faster, more cost-effective routes for Peruvian export goods like fishmeal and fruit, and imports including vehicles and technology.

3. High-Tech, Green Port Operations

• Chancay is described as a “smart green port,” equipped with automation and electric autonomous trucks:

  “The crane takes the goods to an electric autonomous truck which doesn’t need a driver... more energy efficient. Only three ports like this in the world: two in China, one here.”
  (Port Representative, 05:12)

• Over half the workforce is local, integrating Peruvians into cutting-edge maritime industry jobs.

4. Local Economic Benefits

Fruit Producers and Regional Development

• Small and medium producers, like berry farmer Percy Perez, harness faster shipping to access new Asian markets:

  “We want to use the port to export more because it’s good for business, and Asia will be our principal market.”
  (Percy Perez, 07:10)

• New infrastructure—such as warehouses and packing centers—brings jobs and enables local producers to benefit from exports.

  “We’re happy that we can sell our produce to one and get a good price because shipping times to Asia are faster now... Now Asia is an option.”
  (Percy Perez, 07:52)

• Land values and economic activity in the surrounding area are rising as investment, second homes, and landscaping opportunities expand.

5. Challenges: Political & Infrastructure

• Ongoing political instability is a concern:

  “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.”
  (Percy Perez, 09:43)

• Chancay’s growth pressures require urban planning and infrastructure:

  “The business community is waiting for the government to approve the urban development plan... There are predictions the population will triple. The city needs more hospitals, police, security, road planning.”
  (Jorge Lopez, 13:59)

• Broader logistical needs persist:

  “We need railways... the so-called bioceanic railway linking Chancay port with Brazil... a $10 billion-plus project.”
  (Carlo Cecchino, 15:05)

6. Regional Tourism and Community

• Attractions like Chancay Castle are drawing more visitors, credited to the new port:

  “Since the port officially opened in 2024... the economy is growing. We’ve had visitors from China and delegations from across Latin America.”
  (Jorge Lopez, 13:07)

7. China–Peru Relations and Geopolitics

• Peru’s deep historic and economic ties with China underpin the project:

  “Peru’s relationship with China is very strong... probably 5–10% of Peruvian population has Chinese origin... China is the biggest investor in Peru, about $32–33 billion.”
  (Carlo Cecchino, 16:00, 16:52)

• Chancay is a flagship project of China’s Belt and Road Initiative, spurring speculation and trade tensions with the US:

  “There was talk... President Donald Trump sees it as a threat and might slap tariffs on goods using the port.”
  (Jane Chambers, 17:42)

• Carlos stresses openness:

  “Peru is open to business... We should not become dependent on China. The port will be an opportunity, not just with China but also Japan, Korea, India... We need to widen our horizon of trade partners.”
  (Carlo Cecchino, 18:50)

Notable Quotes & Memorable Moments

• “This port... 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.”
  — BBC’s Ritika Gupta (02:07)

• “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.”
  — Cony Chavez Otado, local crane operator (06:17)

• “Everything is changing too rapidly here. People are starting to buy land for second homes... That’s a great opportunity for us because we can landscape their gardens for them.”
  — Percy Perez (08:47)

• “Linking Peru with our neighbors, with Brazil, that is the biggest market. Half of what China imports from Latin America is just from Brazil... Peru will be the gateway for Asia and Latin America.”
  — Carlo Cecchino (15:32)

• “The port’s still not operating at 100% of its capacity, but... we’ve had visitors from China and delegations from around Latin America... nearly every week we have visits from people who are here to start doing business with the port or looking at other business opportunities.”
  — Jorge Lopez (13:07)

Important Timestamps

• 01:22 – Introduction to Chancay Port and its significance for Peru
• 03:31 – Shipping route reduction: Asia–Peru in 23–25 days
• 05:04 – Automation and energy efficiency at the port
• 06:11 – Training local workers for high-tech roles
• 07:10 – 09:43 – Expansion and positive impact on local farmers and businesses
• 13:07 – Megaport’s effect on regional tourism (Chancay Castle)
• 13:59 – Urban and infrastructure planning needs
• 15:05 – Vision for a transcontinental railway
• 16:00 – 18:50 – Peru–China ties, Belt and Road, and US–China competition

Conclusion

Chancay Port is rapidly redefining Peru’s economic landscape: shortening shipping times, boosting local industries, attracting foreign investment and tourism, and cementing Peru’s role in global supply networks. Yet, realizing its full promise hinges on overcoming infrastructure bottlenecks, ensuring equitable development, and navigating complex geopolitical currents.

For more episodes on global business trends, search for “Business Daily” from the BBC World Service.