Strengthening Ties: China’s Railway Investments Transform Peru’s Infrastructure

China’s infrastructural investments in Peru are significantly enhancing bilateral relations, notably through a pivotal rail project linking Lima and Ica. This initiative, projected to offer substantial economic benefits, aims to alleviate traffic and boost regional commerce. As Peru diversifies its export portfolio, it seeks to solidify its economic relationship with China, its largest trading partner.

China’s initiatives in Peru’s infrastructure have strengthened the diplomatic ties between the two nations, particularly as Peru invests in rail networks and logistics services. Analysts highlight the significant impact of Chinese financial and construction support, especially regarding a crucial 323-kilometer rail project connecting Lima and Ica, known as the “Bullet Train Mega Project.”

Jhon Valdiglesias Oviedo, a researcher from 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.” Scheduled to commence in late 2025, this project is projected to conclude in five years and will include substantial infrastructural elements such as 47 kilometers of viaducts and 32 kilometers of tunnels.

Once the project is completed, electric trains will operate at speeds of up to 200 kilometers per hour for passenger travel and 100 kilometers for cargo, boasting 15 strategically placed stations with a daily capacity of 45,000 passengers. Beyond enhancing transportation, the initiative aims to stimulate Peru’s economy by generating jobs and alleviating traffic congestion while promoting regional tourism and commerce.

Furthermore, this rail link expansion is anticipated to strengthen the economic relationship between China and Peru, reinforcing China’s Belt and Road Initiative in Latin America. Oviedo emphasized that the ability to expedite agreements with China provides advantages for countries like Peru, which is expected to improve its existing rail links in the upcoming years.

“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,” stated Oviedo, highlighting not only job creation but also a boost in exports. The plans also include connecting the Andean region to the Port of Chancay through a “Bi-Oceanic Rail Corridor,” further enhancing logistics between the Pacific and Atlantic Oceans.

The completion of the Chancay Tunnel by Chinese companies facilitates transport between coastal and mountainous regions, contributing to Peru’s infrastructure improvements. The $3.5 billion Chancay port project, which began operations late last year, has significantly reduced shipping times to Shanghai, demonstrating its critical role in future Chinese investments in Peru.

Beyond the existing mineral exports that made up 79 percent of total exports to China in 2023, Peru is advancing its agricultural and manufacturing sectors. Omar Narrea from the Universidad del Pacifico stated, “Peru is well-positioned to expand its presence in China’s growing market for fruits and vegetables, where we’re already competitive.”

In summary, the growing collaboration between China and Peru, particularly in infrastructural development, is fostering deeper economic and diplomatic connections. As major projects like the Lima-Ica rail link unfold, they promise significant economic benefits and job creation while enhancing Peru’s logistics capabilities. The diversification of exports from minerals to agriculture also reflects the evolving nature of Peru’s trade relationship with China, positioning the nation favorably in expanding markets.

Original Source: global.chinadaily.com.cn