China’s investments in Peru’s infrastructure are significantly enhancing bilateral ties, with a major focus on rail links and logistics. The Lima-Ica rail project, set to be completed in five years, promises economic benefits, job creation, and improved transportation. As Peru expands its partnership with China, both countries benefit from a growing exchange, particularly in agriculture and manufacturing, beyond mineral exports.
Chinese investments in Peru’s infrastructure are significantly strengthening the bilateral relationship between the two nations, as highlighted by the upcoming development of comprehensive rail networks and regional logistics services. Analysts suggest that with Chinese financial and construction support, Peru plans to enhance its rail links, including a notable 323-kilometer rail project connecting Lima and Ica, known as the “Bullet Train Mega Project.”
Jhon Valdiglesias Oviedo, a researcher at the Center for Asian Studies at the National University of San Marcos, noted, “The more China’s role in Peru deepens, the more we see [the country’s] infrastructure capabilities, construction speed and commitment to developing infrastructure projects.” This project is anticipated to start construction in late 2025 and aims for completion within five years, featuring 47 kilometers of viaducts and 32 kilometers of tunnels, enabling electric trains to run at speeds of up to 200 kilometers per hour for passengers and 100 kilometers per hour for freight.
The Lima-Ica rail link is projected to deliver substantial economic advantages and generate numerous jobs throughout its construction, while simultaneously mitigating traffic congestion and environmental pollution. It is designed to enhance regional tourism and commerce among prominent areas such as Villa El Salvador and Paracas. Oviedo observed that this initiative will forge deeper Sino-Peruvian economic relations while further extending China’s Belt and Road Initiative into Latin America.
Peru’s strategic decision to collaborate with China stems from its position as the latter’s largest trading partner, yielding immediate economic benefits such as foreign exchange and job creation. Oviedo stated, “Peru chose to partner with China because they’re our largest trading partner. The relationship brings immediate benefits to Peru through foreign exchange, job creation and economic growth.” This partnership has also stimulated growth in Peruvian exports.
Additionally, Peru aims to integrate the new rail system by linking the Andean region with the Port of Chancay, facilitating a “Bi-Oceanic Rail Corridor” connecting the Pacific and Atlantic oceans. The construction of the Chancay Tunnel by Chinese builders from the China Railway Group has enhanced logistics between the coast and the mountains. Furthermore, the $3.5 billion Chancay port project has effectively shortened shipping times to Shanghai by nearly 20 days, now achieved in just 23 days.
“The Port of Chancay is becoming a cornerstone for future Chinese investments in Peru’s infrastructure development,” Opaz remarked. As Peru solidifies its economic ties with China, it is also diversifying its exports beyond traditional minerals, which constituted 79 percent of total exports in 2023. This diversification is most visible in agriculture and manufacturing sectors.
Researcher Omar Narrea, from the Center for China and Asia-Pacific Studies at Universidad del Pacifico, affirmed, “Peru is well-positioned to expand its presence in China’s growing market for fruits and vegetables, where we’re already competitive.”
This collaboration reaffirms Peru’s commitment to pursuing new growth avenues through its partnership with China, further establishing its presence in the global market.
In conclusion, the partnership between China and Peru is poised to deepen with significant infrastructure projects, notably the Lima-Ica rail link, which promises enhanced economic benefits and job creation. China’s involvement reflects its commitment to supporting Peru’s growth, while the integration of Peru into the global market will extend beyond traditional exports, particularly in the agriculture sector. This bilateral relationship exemplifies the advantages of strategic economic collaboration and modernization efforts in the region.
Original Source: global.chinadaily.com.cn
