The Chancay mega-port in Peru, a $3.5 billion project expected to be completed this year, is set to become a vital logistics hub in Latin America. This development presents significant opportunities for Việt Nam’s import-export and logistics sectors, particularly in the industrial and energy industries, by enhancing maritime transport connections between the two regions.
Strategically located north of Lima along the Pacific coast, the port is designed to handle 1.5 million TEUs annually. It will facilitate international trade, connecting Latin America with Asian markets. Việt Nam, with its growing trade relations in the region, is well-positioned to leverage this logistics gateway to strengthen its economic ties with Latin American countries.
The European-American Market Department under the Ministry of Industry and Trade (MoIT) highlighted that Chancay could enable Vietnamese logistics enterprises to collaborate with Latin American partners to establish new shipping routes. This would improve logistics infrastructure, reduce transportation time and costs, and create investment opportunities.
Once operational, the port is expected to support the export of Latin American goods, including agricultural products, minerals, and petroleum, to Asia. Simultaneously, it will facilitate the import of consumer and technological goods from Asian markets. By providing a direct maritime trade route, Chancay could reduce the reliance on longer shipping routes via the Atlantic or North America, enhancing regional economic growth.
Việt Nam’s trade with Latin America reached $20.6 billion in 2023, with exports including agricultural products, garments, footwear, electronics, and wood products, while imports consisted of raw materials, agricultural goods, and animal feed. The Chancay port could cut shipping times between the regions by up to 30-50%, saving Vietnamese businesses an estimated 20% in logistics costs.
The port’s establishment is anticipated to strengthen trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and bilateral free trade agreements with Chile and Cuba. It will support Việt Nam in exporting products like textiles, electronics, and rice, while improving access to Latin American exports, including minerals and petroleum.
Forecasts suggest that with improved logistics connections, trade between Việt Nam and Latin America could grow by up to 10% annually. Chancay is expected to become a key link in Việt Nam’s trade strategy, enhancing economic collaboration and regional growth.
Get the latest supply chain logistics news updates at The Supply Chain Report. Visit ADAMftd.com for free tools related to international trade.
#GlobalTrade #LogisticsSolutions #VietnamTrade #LatinAmericaTrade #SustainableLogistics
