China’s investments in Peru’s infrastructure, particularly via the Lima-Ica “Bullet Train Mega Project,” are strengthening ties between both nations. The project is set to improve rail connectivity, generate economic benefits, and bolster regional tourism. China’s role as Peru’s largest trading partner is fostering opportunities for expansion in agriculture and manufacturing exports as infrastructure development continues.
China’s investment in Peru’s infrastructure is forging closer ties between the two nations, particularly in the domains of rail networks and logistics. Analysts assert that the South American country is poised to enhance its rail connectivity with support from Chinese funding and construction capabilities. One significant project is the Lima-Ica rail link, also referred to as the “Bullet Train Mega Project,” which aims to connect Lima with Ica over a distance of 323 kilometers.
The Lima-Ica project is set to commence in late 2025 and is anticipated to finish in five years. Featuring 47 kilometers of viaducts and 32 kilometers of tunnels, it will facilitate electric trains operating at up to 200 kilometers per hour for passengers and 100 kilometers per hour for cargo. The inclusion of 15 strategically placed stations is expected to accommodate 45,000 passengers daily.
This rail project is expected to yield significant economic advantages for Peru, including job creation throughout the construction phase and alleviation of traffic congestion and pollution. Moreover, it seeks to enhance tourism and commerce within critical economic zones, such as Villa El Salvador and Paracas. Jhon Valdiglesias Oviedo from the National University of San Marcos indicates that as China’s involvement in Peru strengthens, it bolsters Peru’s infrastructure capabilities and commitment to development.
The collaboration between Peru and China underlines the deepening economic relationship, particularly as China emerges as Peru’s largest trading partner. This partnership is likely to provide Peru with immediate benefits, including foreign exchange, job creation, and economic growth. Additionally, there is a burgeoning opportunity for Peru to expand its exports amid these developments.
Moreover, Peru aims to connect the Andean region with the Port of Chancay via the proposed “Bi-Oceanic Rail Corridor” which links the Pacific and Atlantic oceans. The recent completion of the Chancay Tunnel by the China Railway Group underscores logistic advancements from coastal regions to mountainous areas. Furthermore, the $3.5 billion Chancay port project reduces shipping times to Shanghai significantly, enhancing Peru’s logistical framework.
The Port of Chancay is identified as a pivotal element for future Chinese investments in Peru’s infrastructure. Beyond minerals, which constituted 79 percent of Peru’s exports to China in 2023, enhancing trade in agriculture and manufacturing is paramount. Omar Narrea from Universidad del Pacifico emphasizes the potential for Peru to strengthen its position in China’s expanding market for fruits and vegetables.
In summary, China’s strategic investments in Peru’s infrastructure, particularly through major rail projects such as the Lima-Ica link, are reinforcing bilateral relations and expanding economic collaboration. These developments not only promise direct economic benefits but also position Peru to diversify its exports beyond traditional minerals, focusing on agriculture and manufacturing. As the two countries deepen their ties, future projects like the Port of Chancay will further solidify China’s role in enhancing Peru’s logistics and infrastructure capabilities.
Original Source: global.chinadaily.com.cn
