China-owned Chancay Port Set to Become Latin America’s Third Largest

The latest capacity projections for the Chancay Port reflect China’s expanding influence in Latin America and the Caribbean (LAC). Chinese port ownership could create strategic vulnerabilities and gain leverage over hemispheric commerce.

1. The Centrality of Chancay: If Chancay expands to the projected 3.5 million twenty-foot equivalent unit (TEU) capacity, it will be the third-largest port in LAC and the largest port controlled entirely by a PRC state-owned enterprise, significantly contributing to the rewiring of hemispheric trade through PRC-owned channels.

2. Scale of China’s Influence: In 2023, the top 10 ports in Latin America saw approximately 6.5 million TEUs of cargo passing through terminals operated by PRC companies. Control over ports helps the PRC rewire regional commerce in its favor. In times of crisis or conflict, this control could present a strategic vulnerability.

3. The Port Next Door: Three Mexican ports in the top 20 have terminals that are operated by Hutchison Ports, the same Hong Kong based company which operates two ports on both sides of the Panama Canal. The location of these facilities in Mexico, the United States’’ top trading partner, exacerbates concerns that the United States’ southern neighbor could act as a back door for PRC imports.

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