The Chinese port of Guangzhou launched a direct route to the Peruvian port of Chancay, a move that will reduce logistics costs and strengthen trade with Latin America, CCTV reported. The announcement comes at a time when Beijing is seeking to further strengthen its relationship with Latin America amid trade tensions with the United States.

On April 29, the 300-meter-long COSCO Volga loaded more than 400 refrigerated containers, household appliance accessories, automotive parts, and other cargo produced in Guangdong. The direct route arrives in Peru in about 30 days and reduces logistics costs by 20%.

In addition, the new service will accelerate the connection between the port of Guangzhou Nansha and ports on the West Coast of Latin America such as Manzanillo (Mexico) and San Antonio (Chile).

Appliances, electronics, furniture and toys are some of the items that are seeing an acceleration in exports to Latin America, he said CCTV system, adding that high-quality fruits and seafood from the Pacific coast, as well as red wine from the Andes, will arrive in China in less time.

The first phase of the Chancay port, built by Cosco for a US$1.300 billion investment, was inaugurated in November by Peruvian President Dina Boluarte and Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit in Lima.

It is a deepwater port with 15 berths, which Xi announced as the successful start of a “XNUMXst-century maritime Silk Road” and part of China’s Belt and Road Initiative.

China is expected to invest billions more in the port of Chancay, as Beijing and Lima work to position it as a major shipping hub between Asia and South America.