Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it?
Correct Answer Station
2024-05-29 13:20Posted in Anhui Finance and Economics Creator
When it comes to "Peru", if you have an impression of this South American country, most people probably stay in middle school geography books.
But recently, something happened in this country that is closely related to China.
Chinese companies have invested $1.3 billion in projects, which translates to almost 9.5 billion yuan, and now Peru wants to break the contract.
What's going on?
Let's talk about it today.
Many people may not know that Peru is the country with the largest diaspora in South America.
Peru is a very small country, with a GDP of $267.565 billion in 2023, and if it is placed in China, it is not as good as Xinjiang, with a per capita GDP of $7,934, which is about the level of about 10 years ago in China.
But Peru is a country that is a serious "mine".
It is one of the world's 12 largest mineral countries, ranking 7th in the world in terms of total mineral resources, among them, silver reserves rank 1st in the world, copper and molybdenum reserves rank 2nd in the world, lead reserves rank 3rd in the world, gold and zinc reserves rank 5th in the world, and tin reserves rank 9th in the world.
Silver, copper, molybdenum, lead, zinc, and tin are all very important industrial metals.
Peru once had a splendid Inca civilization, but in modern times it was colonized by Spain for nearly 300 years
However, South American countries, including Peru, are not very industrially developed, so these minerals are basically exported by sea.
"Selling minerals" has become an important source of Peru's economy, and mineral exports can account for 60% of Peru's entire national exports, and are also the main source of foreign exchange.
There is a real problem here: Peru's infrastructure, especially the ports, is too poor, which affects the export of minerals and the ability to make money.
It's not that Peru doesn't want to have a modern port like the port of Shanghai, mainly because it doesn't have the money and technology to do it.
China has been Peru's largest trading partner for many years.
In recent years, Chinese companies have also invested in many mineral resource projects in Peru.
The more influential ones are Minmetals Las Bampas Copper Project, Chinalco Tromoc Copper Project, Shougang Secret Iron Ore Project, etc., among which, the copper output of Chinese investment projects can account for more than 1/5 of Peru's national copper output, and the iron ore is higher.
You have a need, I have a need.
在2019年初,中国远洋海运集团旗下的中远海运港口有限公司(中远海运港口),买下了秘鲁火山矿业集团(Volcan Compañía Minera S.A.A.)所有的钱凯港(Terminales Portuarios Chancay S.A.)60%股权。
This project is also very well chosen.
The port of Chancay is fifty or sixty kilometers north of Lima, the capital of Peru.
Lima is not only the political center of Peru, but also the economic center of Peru, with almost 60% of the country's economic activity concentrated in Lima and the surrounding areas.
On the previous map, we can see it even more obviously.
Moreover, Chankai Port is a natural deep-water harbor with a maximum water depth of 16 meters.
The first phase plans to build 4 berths, including 2 berths for multi-purpose berths and 2 container berths, with an annual designed total throughput of 1 million TEUs and 6 million tons of cargo, and can berth Panamanian-class cargo ships with a carrying capacity of 18,000-24,000 TEUs.
This is something that no other port in South America can do.
After the completion of this project, Peru will benefit the most.
Because the port of Chankai will become an important gateway from South America to Asia, greatly changing the pattern of trans-Pacific trade.
Once opened, the shipping time from Peru to Asian countries will be reduced by at least 10 days.
Moreover, Peru shares borders with five countries: Ecuador, Colombia, Bolivia, and Chile, and even more South American countries have to go to Asia or the west coast of the United States Freighters no longer need to squeeze the Panama Canal or go around to the southernmost part of the South American continent.
With the port of Chancay, Peru will also become an important trade hub in South America.
For example, Brazil's ambassador to Peru, Mr. Sores, said, "There is a great opportunity for Brazilian grains and meat to be shipped to Asia through the port of Chancay (no longer via the Panama Canal)." ”
Relevant tender information for Chan Kai Port
Peru's then-president, Martín Vizcarra, also publicly said that the agreement with Chinese companies would make the port of Chancay "a transportation hub for the entire South Pacific."
It will also provide 9,000 direct and indirect employment opportunities for the local community.
For China, this is also a good thing.
Because, in South America, China now has important economic interests, and it is very important to have its own ports.
The Qiankai terminal has also become the second South American port project of China Enterprise Investment Holdings (the first was in February 2018, when China Merchants Port Holdings Co., Ltd., a subsidiary of China Merchants Group, acquired a 90% stake in the Paranagua port project, the second largest port in Brazil).
Peru was able to build a modern port facing the Pacific Ocean without spending money, becoming the gateway to South America.
Chinese companies also have access to high-quality project assets, which is conducive to safeguarding economic interests.
It's totally a win-win affair.
In 2019, the National Port Authority (APN) of Peru granted COSCO SHIPPING Group the exclusive right to operate the port of Chancay.
Exclusivity, this matter is very important, everyone pay attention, I will talk about it later in the article.
Therefore, Chinese enterprises did their best and started construction immediately after signing the contract.
In the three years of the epidemic, I also tried every means to catch up with the construction period without delaying the progress.
In addition, COSCO SHIPPING also plans to introduce an intelligent management system and equip it with automated quay cranes to build the port into a modern smart port.
At the same time, the port will be equipped with tunnels, roads and a logistics park, which will be connected to the Pan-American Highway by a 1.8-kilometer tunnel to the Lima region.
However, some time ago, Peru unilaterally announced that it would revoke the exclusive right of Chinese enterprises.
Related media coverage
This makes one want to say that Peru is a bit "not martial".
For one, it backtracks.
Five years ago, it was the Peruvian National Port Authority (APN) that gave Chinese companies the exclusive right to operate, and five years later, it was the Peruvian National Port Authority that said it would revoke the exclusive rights of Chinese companies.
Second, it chose this point in time.
With a total investment of US$1.3 billion, almost 70% of the first phase of the project has been completed.
According to the plan, it will be officially put into operation before the end of this year.
Now, it was built immediately, but the other party came to break the contract......
Thirdly, the reasons given by Peru are really unreasonable.
Peru's National Port Authority said it did not have the power to grant exclusivity to companies, and that the 2019 decision to Chinese companies was an "administrative error" and asked the judge to revoke it.
It's like playing a double reed.
The well-known maritime media Maritime Executive reported that it is common for Peru to give companies exclusive rights to operate ports.
Photos of staff activities in Chan Kai Harbor
As for why the Peruvian side wants to cancel the exclusivity rights of Chinese companies?
There are two reasons for this.
First, Peru wants to take the opportunity to expand its interests.
This also makes sense, as analyzed earlier, it is common to give exclusivity.
But it is precisely at a time when China's technology and funds are running out that it is strange to propose the abolition of exclusivity.
Second, there are countries such as the United States making trouble behind.
The Financial Times broke the news that the United States had instigated Peru to say that China's "control" of critical infrastructure would pose a threat to national interests, and also proposed that Latin American countries follow the example of the United States to establish a committee to review foreign investment.
What the truth is, the outside world still does not know.
But it is obviously not possible to take advantage of China at both ends.
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Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it? -
Chinese companies spent $1.3 billion to build a port, and this South American country suddenly wants to regret it?