A new direct maritime route between Asia and South America has recently been established, facilitating trade. This route seeks to optimize trade between the two continents, facilitating the exchange of products with a focus on reducing costs by at least 20 percent, reducing transit times, and energy consumption.
One of the determining factors in the establishment of the new commercial maritime route has been the construction of the port of Chancay in Peru, developed by Volcan Compañía Minera and the Chinese company COSCO Shipping Ports Limited, with an investment of more than USD 3.5 billion. The port is a logistics hub for trade in the region, designed to receive large-capacity ships without intermediate stops. It has been operating since the end of 2024, marking an important milestone in Asia-Pacific trade.
Considering that maritime transport accounts for more than 80 percent of world trade volume, with a trend toward accelerated growth. The port of Chancay not only allows for shorter transport times and reduced freight costs, but also reshapes trade in the region, bringing it closer to the Asian continent, which moves 70 percent of the world’s goods.
Operational efficiency is evident, as in the first two months of operation, the new Chancay-Shanghai route has been a turning point in optimizing trade between South America and Asia, transporting 22,000 tons with a total value of $84.06 million. In addition, the potential is even greater, as the new port of Corío or Port of the Americas is currently under construction in Peru, with a greater capacity that would allow the arrival of larger ships, thus consolidating a logistics hub for commercial integration with Asia via the Pacific Ocean.
In this context, this new maritime trade route is an important means for the export of various minerals produced in South America, with countries such as Chile standing out as the largest producer and exporter of copper and lithium, as well as a structural supplier of critical minerals. Peru also stands out in the production and export of silver, copper, gold, and zinc; Brazil with iron; and Colombia with coal. China, the United States, and Europe are the main destinations for exports of these minerals, and China has capitalized very well on the opportunities with Peru via the sea, where transoceanic trade is now connected.
In light of this expansion and strategic connection, new opportunities are opening up to facilitate mineral exports from countries in the region such as Chile, Brazil, Bolivia, Colombia, and Ecuador, as they are crucial in the global mineral market, being key suppliers for various industries such as automotive, technology, naval, etc. Port decentralization, the reduction of logistics costs in the transport of minerals to Asia, and the decrease in transit times will allow for better logistics efficiency for mining companies in these countries, which will translate into lower operating costs, thus generating an increase in competitiveness.
Although South America has significant mineral reserves, it is important to consider the growing demand for critical minerals, i.e., those minerals that are strategic for the global energy transition. For example, critical minerals such as copper, lithium, and molybdenum are used in the use of energies such as wind, solar, geothermal, and nuclear. In response to this, some countries, such as Argentina, are already planning supply strategies. According to J.P. Morgan, nearly $50 billion is being invested in projects that will begin production or exploitation before 2030, including six projects in Argentina, which, although it does not currently produce copper, would produce 793,000 tons of the mineral per year, thus adding to the global supply to help meet growing demand.
It is also worth mentioning that, although ports are a vital element in the economy in the context of global mineral trade, facilitating the exchange of products, they also present some potential vulnerabilities. That is why, along with opportunities, challenges arise that must be addressed by various sectors. Security is crucial, as free trade depends on transparency and security in operations. On the other hand, a commitment to ensuring sustainability and caring for the environment is necessary.
Thus, the new Asia-Pacific trade route will allow South America to establish itself as a key region in global supply chains for critical minerals. At the same time, the port of Chancay, which is now operational, contributes to reducing transportation costs and times, promoting more efficient logistics chains and the direct export of minerals. This, combined with other factors, will help consolidate the mining industry as one of the pillars for economic growth and development in the countries of the region.
* Heidy Paredes is a Research Fellow at the Fundación Internacional Bases, an economist with postgraduate studies in conflict resolution. Former delegate for global markets and economics at the Harvard College Conference for Asian and International Relations. She has worked in development project management, international cooperation, and business strengthening. Academically, her work focuses on the analysis of international trade, social conflicts, and geopolitics.
Source: We Are Innovation
