The Port of Chancey is a product of commercial investment and not public debt financing. This logistics gateway has quickly transformed international trade by linking the Asia Pacific with South America.
June marked the first anniversary of the commencement of commercial operations through the Port of Chancey. Since it became operational, the Peruvian port has launched three mainline routes and four feeder services connecting major Chinese ports with many countries in Latin America like Colombia, Ecuador, Chile and Panama.
The Port of Chancey is a product of commercial investment and not public debt financing. This logistics gateway has quickly transformed international trade by linking the Asia Pacific with South America. Transit time has also reduced since the Port became operational, expanding export access to Asia. Export transit time from Peru to Asia has reduced by 17 days, and cargo movements from Asia to Brazil have also dropped by 22 days. This port has been particularly instrumental in strengthening Peru’s position as a logistical bridge between the APAC markets and LatAm.
The terminal has been vastly impactful on the growth of agricultural exports and time-sensitive cargo flows. It has also helped generate employment and drive regional economic development. The Chancey port employs automated container handling equipment, digital control systems and smart port technologies to help improve cargo visibility.
Given the positive impact the port has had on the LatAm region, shipping operators are enthusiastic about increasing operational capabilities and also expanding the port’s shipping network to boost regional and international trade.
June also marked the entry of Abu Dhabi’s AD Ports Group into the Latin American market, after it acquired Brazil’s Corredor Logistica e Infraestrutura (CLI). CLI is one of the country’s top agri-bulk port terminal operators, and this M&A deal was valued at 3.1 billion dirhams ($835 million).
There are two significant assets administered by CLI under long-term concessions. The Port of Santos is home to CLI Sul, a significant port for the export of sugar and a vital entry point for supplies of grain and soybeans. The headquarters of CLI Norte are located close to the Port of Itaqui in Brazil’s quickly expanding ‘Arc of the North’ logistical corridor, which is a significant agricultural export route.
In order to expand internationally, Gulf infrastructure and logistics corporations are increasingly investing in critical assets along international trade routes, as seen by this transaction. As demand for export infrastructure, supply-chain resilience, and food security grows, investors are becoming more interested in Brazil, one of the top exporters of agricultural goods worldwide.
The Port of Santos is yet another important gateway into the LatAm markets. Earlier this week, it completed Brazil’s first ethanol-powered containership refuelling operation in July. The vessel, owned by French shipping group CMA CGM, has a13,000 TEUs (twenty-foot equivalent unit) capacity and is expected to connect Brazil and China via Sri Lanka.
The refuelling operation was jointly carried out by CMA CGM, which acquired port operator Santos Brasil last year and Bunker One and Copersucar, a sugar and ethanol producer. With this initiative, Brazil is transitioning towards a low-emission economy.
Latin America’s latest initiatives and programs prove the region’s commitment to prioritising its port operations. Recently, 33 public and private sector port professionals from Argentina, Colombia, Guatemala, Mexico and other LatAm countries attended a Course on Modern Port Management conducted by the Port Authority of Valencia (APV).
This was part of the TrainForTrade Port Management Program of the UN Conference on Trade and Development (UNCTAD). The training program intended to improve and share knowledge, strengthen networking, and incorporate new members into the TrainForTrade Port Management Programme.
A new era of global connectivity is heralded by the historic success of the Port of Chancey and strategic acquisitions like AD Ports Group’s entry into Brazil, which are driving the rapid expansion of Latin America’s maritime infrastructure. Governments are looking to make trade smoother and easier by finding avenues which will reduce transit times considerably, and investing in human capital through specialised training.
These programs are transforming the region into a major hub for international trade. With significant private investment and state-of-the-art technology, Latin America is actively changing the resilience, sustainability, and efficiency of global supply chains rather than just engaging in international trade.
