@@chrisball3412 Yes! No humans operating the big cranes which unload and load the containers on the ships, as well as no humans driving the trucks which haul the containers around the port itself. All trucks inside the port will be fully self driving.
@@ibubezi7685 The container cranes in Chancay will be remotely controlled with computers. No people sitting in the crane operator's compartment on the cranes themselves.
It's amazing how shipping impacts so many aspects. Thanks to Sal for all this knowledge. This information needs to be taught at the high school senior level so that we eventiually have an educated population.
90 pct of all transportation is at sea. 99 pct of everything in my home was imported. Cargo Shipping is the red blood cells giving us oxygen and nutrients.
Exactly! Definitely should be taught. This is phenomenal information that gives us a broad picture of what’s going on economically, politically and militarily.
Outstanding episode. So exciting. This is a joint venture by Cosco...I predict it will be a success. The port is for the growing Brazil-China trade. When the US started the trade war against China, China shifted almost the entirety of its agricultural imports from the US to Brazil.
Bottom line; China continues to builds their supply chain for the future, while the U.S. continues to sit on their hands, letting the Longshoreman union keep our technology mid 20th century, our ports constrained, and our port costs prohibitively expensive.
@@densegunial3674 He’s making a joke about how Trump wants to stop all trade between the US and other countries and have the US manufacture everything itself.
@@densegunial3674 The next incoming administration will most likely destroy the USA economy, as well as destroying trade with other countries. No USA supply chain needed if there's no interest or demand for import or export of supplies.
@@obsidianjane4413 Peru is not such a weak country that that strategy could work. Peru has lowest debt to gdp at 35%, 85 Billion USD in reserves and access to cheap international credit. The ports cost was 1.3 billion maybe 3.4 with expansions, nothing. Also it was 100% finances privately through China and Peruvian companies, the State of Peru paid 0.
Thanks for this outstanding video...I hope a lot of people see it and take notice! I visited Callao when I was in Peru, but missed the size of this and its impact. When I was in Chile I noticed how much trade was going on with China and this will further these connections-both politically and economically. Wondering how this will affect transshipment thru the Panama canal? America needs to be aware of this.
I just looked at an email for a company selling used containor boxes and then I went on youtube and there was your 1.3 Billion megaport for 24,000 TEU. Tnx Sal keeping me informed on ocean shipping
With the interaction with Central America, China can be circumvent TARIF that USA is putting on imports. It will be affecting the Union's position in negotiating contracts with shipping companys.
@@obsidianjane4413it is a smart move. They want their own controlled megaport in America to counter US control of panama canal, and they got it while at the same time, boosting their image among the latam peoples. Its pretty cheap too cause Peru fund like 40% of the project.
@@backpackpepelon3867 No its not. The only way it makes sense is as a cheap transship point for megaships making the trans-Pacific leg as efficient as possible. This only works as long as the major destination market is still the USA. All of SA is a fraction of it, and as mentioned in the video, if the US is not friendly, you aren't going to be using the Panama Canal, and there are those little hills that keep Chancay from servicing even the West Coast, much less the rest of SA. China might as well go the long way round.
@Sal I remember that Brazil had this crazy rule of charging taxes for each state that land based freight passes, so if you pass 3 states you will have to pay tax in each state.... not sure how this is now or will work out. Peru is a great country. Thx 4 the informative video
I've been hearing about such a railroad for decades now. The hurdle presented by the Andes is something sound engineering can overcome, not with ease, but very doable. It'll take time. The biggest hurdle, however, at least on the Brazilian side, is the Amazon rainforest and the necessary ecological impact studies required to make something of that magnitude come true. The Brazilian Army wanted a railroad in the region, more or less forming a cross, running south to north and then east to west connecting the entire region and it never went past a very very early planning phase. Maybe with more money pouring in all these hurdles could be overcome, but I wouldn't place a bet on how long it'll take to even begin construction.
@@celdur4635 Have you seen the Trans-Amazonian 'highway'? It was never finished. There are major portions of it, more importantly the most of the portions running through the Amazon jungle, that are unpaved. I have to remind people that the Amazon has the highest pluviometric indicence in Brazil and that particular stretch of 'highway' turns into a mudslide fest the likes of which off-road vehicles with full locking differentials struggle to pass through. There are several financial, legal and environmental issues to overcome and it does not seem likely that it'll happen anytime soon. One of the usual 'modus operandi' of the succeeding governments in Brazil is to simply pass the bucket to the next guy when the issue is too thorny to be effectively tackled. In short, it's a high political risk project and no one really wants to touch it with a 10 ft. pole, even if it does benefit Brazil as a country.
I visited Peru a few times in recent years. I stayed with a Chinese-Peruvian family for little on my last visit. Yeh I was surprised to see a Chinese population established there. Not like the Chinatown I know of course, but they are China
They have been there for centuries. You all remember that Chinese immigrants built the US railroads right? The only reason there aren't more Chinese Americans was because of the Chinese Exclusion Act of the 1880 that prevented immigration to the US until well after WW2
These Chinese loans are really strategic. They grant collateralized loans against infrastructure so that in the event of default, they take control of infrastructure. This is what a producing and saving nation does, this is part of the Cantillon Effect I mention all the time. Thanks Sal
While America Dragged the UK and AUstralia into endless wars... China invested in their future... Ageing infrastructure, archaic import laws and ageing cargo fleet that is not being replaced. America is doomed to fail... it is far too broken to fix.
The other point to think of is because of the massive amount of trade into and out of China, it would be beneficial to have less ships, of larger size, going through Chinese ports, to cut congestion in those ports.
NYC wharf worker are getting paid USD $67/hr after the last union strike, they also stopped the planned automation of the harbour. Peru's New wharf is fully automated, with Robotic trucks and cranes That can work 24/7 and are able to pack hundreds of ships per day which would save cost for both Exporter and importer, the New harbour and railway system connecting neighboring countries will be able to provided double digit growth for Peru for the next Decade.
This video as well as all your earlier ones are why I've sent letters to President Trump's administration to make you Secy. Transportation. Fabulous analysis. Just tremendous.
What! Isn’t that post slated for Marjorie Taylor Green? We also need Sarah Palin in the executive administration. We don’t need any highly educated people. They are the elites, not.
US wants to save face for abandoning Peru for decades with something. They are also building a SpacePort in north Peru. Although Peru will invest 1 billion also.
There is no connection. The major of Lima is a businessman who is the founder of the Cusco - Machu Picchu private train service. So, he has contacts and was able to get a donation from Blinken (California's used trains that are being replaced). The major will use the trains to provide a transport to the suburban towns in the east of Lima. The government of Peru is currently in the last design phase of a train route from Callao (Peru's main Port until Chancay) to Ica, through a government to government contract with the United Kingdom. The train to connect Callao to Chancay it is just being designed. A US$9 billion road to connect Lima with the Andean central node is being developed through a government to government contract with France. A multibillion irrigation project is being developed with a government to government contract with Canada. Biden, not to lose face, signed the agreement as per the Peruvian government request to get NASA support to develop a private project for a space launch site. In conclusion, the US is not actively doing any business in Peru.
"It's really having problems with some other nations." In the SCS? Nope, it's really just the Philippines. Its other territorial disputes (like with Vietnam and Indonesia) are no more serious than what those countries have with each other. Anyone who actually lives in the region knows these countries are constantly stepping on each other's toes and arresting each other's fishermen. Western media outlets like to frame it as China versus the entire region when its relations have been fairly smooth despite the territorial disputes, the only real exception being (again) the Philippines.
US behind the Philippines provocations. Marcos does as he's told or the stolen billions his daddy stole will never be unfrozen. All of a sudden you see the new US bases in Philippines. Philippines is still a US colony and vassal state.
Powerful! Meanwhile Blinken had to come out and sell a mini-deal of some California private train company selling a few old diesel engines to Peru, claiming the US was also investing in infrastructure in LatAm 😂
Another issue; much of the US agricutural production; soybeans, corn, grains, etc., is eported to China. China may be seeking to develope an alternative source for these products in South America and is developing port facilities to efficiently transport them to China.
Too late for US farmers. All the corn and soybean storage is full and prices have tanked. China has been developing alternate sources of supply for more than decade to protect themselves from sanctions.
Chinese press were talking about a port project in Vladivostok, not sure how far along that is. They were referring to and old port Haishenwai that they used to have near there in the old days. I'm sure it's on their mega port alternate routes list. If a war breaks out south they can truck exports to there.
I seem to remember that years ago, Chinese owned companies were contracted to run the ports at both ends of the Panama Canal. Was that ever true and if so is that still true.
China also owns the largest iron ore mine in Peru located at Mancora, near the Nazca lines. China also owns a controlling interest in Peru's largest copper mines.
This will create a large incentive to build a railway across the andies, and china has quite a bit of experience now with building such projects. Brazil's grain production will only go up once that route opens up. Bad news for American farmers, since Brazil can do it cheaper and it will be tariff free.
Rail across the andes has existed since the 1850's. For massive bulk transport of Brasilian cargo on top of Peruvian mines it needs to be modernized and it doesn't have connection to the Peruvian Amazon so that would need to be constructed. But navigable rivers exist and highways bridging Peru and Brazil also exist.
Rail to the Andes, not across the Andes. There is a road that connects the South of Peru to Acre in Brazil. That is the area where Brazil grows soybeans. However, the size of the trucks the Brazilians use for export are too large for the route that goes across the Andes. A rail road needs to be built to be cost competitive.
Could you do an analysis of the port as a transshipment point for cargo coming from Asia to US East coast ports via Panama Canal..? That would seem to be the biggest advantage.
That's not what it's for. US has China on its brains. Do you realize how huge the new trade between China and Brazil is? All the agriculture the US was selling to China pre Trump is now bought from Brazil. All of it.
The maritime Silk Road has the potential to be best way for development of the global South. And all that for the price of two dozens Beverly Hills mansions.
Back on the 1980’s when were desperate for Chinese products, all you had to do was float a ship thru HongKong harbor get new paperwork and now origin of products is Hong Kong and the u.s. loved it!😊
Why is the US furious and raving mad over the opening of this new Peruvian port ? US ability to know exactly what goods are shipped in and out of South American countries will be significantly reduced in future since these huge container ships do not need to use the US-controlled Panama Canal anymore.
FYI on Chinese pronunciation: X is pronounced like “SH” in She or shop. So Xi is pronounced exactly like the word “She” However words with Sh in Chinese is pronounced differently - think of how a California Valley girl says “for sure”. Or how you say the word shirt. Notice how you say the “sh” in “she” and “shirt” slightly differently - your tongue placement is different.
So, what happened to the super large tanker ships? Are they still around? Is it really more cost/time effective to transfer to a smaller ship in Peru to take containers to the West coast of the US or through the Panama Canal or shipping direct?
The road/rail network will cost a boatload of money, way more than this port. Kinda weird to me to sail these TEUs all the way across the Pacific just to wait for another ship to move them somewhere else. That's why I'm not in the shipping business I guess.
Well think of airplanes. You got international flights between countries which only the big jet can do commercially into the larger airports. But the passenger may then have to take a connecting flight to a smaller town hundreds of kms away to reach their destination
I’m wondering… if to increase capacity, as you said Sal, for these potential future ships to carry 27000 or even 30000 TEU, beam cannot be increased due to current crane outreach, so only length can be increased, how long would those ships be? Knowing that the huge 24000 TEUS have a length of 400 meters, and that sounds already crazy to me, are we talking of about 500 meters? Can that be achieved strength wise? And what would that mean for the maneuvering capability? That size of ships would only be used on oceans, I can’t imagine that size in Singapore and Malacca straits or English Channel-Dover Strait - North Sea… There must be a limit somewhere…
Odd place to build a major container port since there are few rail links to much of South America and no rail links to North America. Seems like a feeder port where their is parking containers for transshipping on smaller vessels
If the routes shown on the map between Peru and China are any indication, using that route as an alternative to the Malaca Strait will be a nonstarter as. It passes by Hawaii. It would be hard for Chinese vessels to get out far enough to avoid being attacked in the event of a war. That's assuming the vessels can even make it past the first island chain.
They're not doing this in preparation for direct conflict. They have Russia for that. This is to expand economic dominance so that we have no option but to initiate direct conflict to maintain primacy.
Thanks for the update, Professor. This is a great way for China to give its population jobs. Years of employment will be created from developing needed infrastructure and transportation routes throughout the area and running it all. It will be interesting to see how the facilities hold up. China is really putting the moves on its targeted countries and markets.
Has no one noticed that this is a fully automated, unmanned port? There’s no fear of dockworker strikes or the port being nationalized under different governments
It was so much simpler in the mid 1950 when the first container ships were launched. Since then the world's population has tripled and helped make things a lot more complicated.
The host is too focused on China. This was a Peruvian private project that Cosco was savvy enough to become partners with Peru's Volcan (mining company). Cargo from China and Korea takes 35 days to arrive to Callao. All Asian cargo is trans shipped in Long Beach, California or Manzanillo, Mexico. With the new Chancay route travel time is reduced to 23 days. Freight cost is also reduced by 20%. Thus, it opens up new business opportunities for cargo from Asia to the Pacific Coast of South America.
How long until China talks Panama into letting them open up a full-blown four ship wide passage through the isthmus instead of the inadequate canal? You can say it's impossible for a number of reasons, but that word apparently doesn't quite exist to them!
@richarda996 Like I said, impossible. Not to take contention with you, but as opposed to the W coast of S America? I believe Peru is more stable than Chile, but isn't it all in the ring of fire. Don't we build right on top of volcanos and faults already?
Interested in location of port relative to surrounding geography especially how fast mountains leap from beach to super high also local extreme ? Weather. ❤
I had a discussion about the huge new ships 🚢, not being able to dock in any ports here in New Zealand, eventually blocking us out, thus we didn't agree with the belt and road scam, 😮😮obviously the possibility of it coming about in the future,
Pls take the time to visit portland and the spruce goose museum where maritime Henry Kaiser developer did in fact influence usa to make a ship that fly and I will have the opportunity to give you our “Ship happens “lapel pin for your rare tv jacket outfit. .
Sky didn't teu US promoted Peru's new facilities? Or others in different points of the world? Well, Chin a became the World's Mega Factory. Unfortunately, the US followed another Road -- deindustrialization! Industrial Capitalism was replaced by Financial Speculation -- giving rise to a Casino Economy. G.E represents an excellent exsmple. And under the (blind?) Guidance of Jack Welsh, practicaly brought to an end it's gigantic Industrial Production, becoming instead a Financial Company. Welsh became a GURU of that perspective, lecturing his Vision around the Country. And Corporate America totally embraced his Vision. Accordingly, most American Industrial Production was transfered to China. Europe and Japan followed suit , although to a lesser extent. In sum, Europe and the USA desperately need to import Chinese, South-Korea and Taiwan produced goods. A sad reality widely evident during COVID 19. Even Masks, gloves and some basic medications had to be imported from India and China
This new port also has a state-of-the-art container handling system.
are you talking about automated with no humans working.
Hoping Sal looks into that - Western ports' container-cranes are built in China (mostly) - this port won't be any different.
@@chrisball3412 2024.
@@chrisball3412 Yes! No humans operating the big cranes which unload and load the containers on the ships, as well as no humans driving the trucks which haul the containers around the port itself. All trucks inside the port will be fully self driving.
@@ibubezi7685 The container cranes in Chancay will be remotely controlled with computers. No people sitting in the crane operator's compartment on the cranes themselves.
It's amazing how shipping impacts so many aspects. Thanks to Sal for all this knowledge. This information needs to be taught at the high school senior level so that we eventiually have an educated population.
90 pct of all transportation is at sea. 99 pct of everything in my home was imported. Cargo Shipping is the red blood cells giving us oxygen and nutrients.
Exactly! Definitely should be taught. This is phenomenal information that gives us a broad picture of what’s going on economically, politically and militarily.
Outstanding episode. So exciting. This is a joint venture by Cosco...I predict it will be a success. The port is for the growing Brazil-China trade. When the US started the trade war against China, China shifted almost the entirety of its agricultural imports from the US to Brazil.
It will not be a success.
American sabotage.
red state get F
@@vv-cv6ud, and they still think Trump' MAGA thing, and he will save them by creating more tariff
This is why RUclips is so great. Not a single mainstream media source could manage to provide this context.
Bottom line; China continues to builds their supply chain for the future, while the U.S. continues to sit on their hands, letting the Longshoreman union keep our technology mid 20th century, our ports constrained, and our port costs prohibitively expensive.
@@mopenshaw
The good news:
The USA probably won't require much of a supply chain by 2026.
@@blaydCA Apologize for not understanding this but can you give more context on this?
@@densegunial3674 He’s making a joke about how Trump wants to stop all trade between the US and other countries and have the US manufacture everything itself.
@@densegunial3674
The next incoming administration will most likely destroy the USA economy, as well as destroying trade with other countries.
No USA supply chain needed if there's no interest or demand for import or export of supplies.
@@densegunial3674
Once the USA economy tanks, we won't need a supply chain.
1.3B price tag seems like a steal of a deal
yeah, its just one port, not super big.
@@davidanalyst671its 3.6
@@davidanalyst671 The key is how big the ships that can dock there are. It has planned expansions for 4 billion more dollars as commerce increases.
It doesn't seem like a big number to us, but in SA the dollar goes very far.
@@obsidianjane4413 Peru is not such a weak country that that strategy could work. Peru has lowest debt to gdp at 35%, 85 Billion USD in reserves and access to cheap international credit. The ports cost was 1.3 billion maybe 3.4 with expansions, nothing. Also it was 100% finances privately through China and Peruvian companies, the State of Peru paid 0.
Thanks for this outstanding video...I hope a lot of people see it and take notice! I visited Callao when I was in Peru, but missed the size of this and its impact. When I was in Chile I noticed how much trade was going on with China and this will further these connections-both politically and economically. Wondering how this will affect transshipment thru the Panama canal? America needs to be aware of this.
Congrats on being an in-demand speaker for such important conferences.
I came to say precisely the same thing! Nice to see! Sal works hard and has a lot to share!
I just looked at an email for a company selling used containor boxes and then I went on youtube and there was your 1.3 Billion megaport for 24,000 TEU. Tnx Sal keeping me informed on ocean shipping
With the interaction with Central America, China can be circumvent TARIF that USA is putting on imports. It will be affecting the Union's position in negotiating contracts with shipping companys.
He covered that a little bit, that things shipped from Peru would also be subject to tariffs.
The ILA is fighting a losing battle.
big brain move from china
Not really. Its just a better use of all those USDs than more empty tofu highrise cities.
@@obsidianjane4413it is a smart move. They want their own controlled megaport in America to counter US control of panama canal, and they got it while at the same time, boosting their image among the latam peoples. Its pretty cheap too cause Peru fund like 40% of the project.
@@backpackpepelon3867 No its not. The only way it makes sense is as a cheap transship point for megaships making the trans-Pacific leg as efficient as possible. This only works as long as the major destination market is still the USA. All of SA is a fraction of it, and as mentioned in the video, if the US is not friendly, you aren't going to be using the Panama Canal, and there are those little hills that keep Chancay from servicing even the West Coast, much less the rest of SA. China might as well go the long way round.
@@obsidianjane4413your heart is aching knowing chinese is leading keep crying 😅😂
@@jaycabi19 Isn't it past your bed time?
Thanks for another clear video 👍👍👍
So nice of you
Congrats Peru! I wished we had this container port in my country! Super achievement!
Thanks for the update on this Sal. Safe travels!
@Sal I remember that Brazil had this crazy rule of charging taxes for each state that land based freight passes, so if you pass 3 states you will have to pay tax in each state.... not sure how this is now or will work out. Peru is a great country. Thx 4 the informative video
I've been hearing about such a railroad for decades now. The hurdle presented by the Andes is something sound engineering can overcome, not with ease, but very doable. It'll take time. The biggest hurdle, however, at least on the Brazilian side, is the Amazon rainforest and the necessary ecological impact studies required to make something of that magnitude come true. The Brazilian Army wanted a railroad in the region, more or less forming a cross, running south to north and then east to west connecting the entire region and it never went past a very very early planning phase. Maybe with more money pouring in all these hurdles could be overcome, but I wouldn't place a bet on how long it'll take to even begin construction.
China: hold my beer...
The Chinese have large quantities of "axle grease" they use effectively to get things done in the developing world.
Brazil already has highways through the Amazon and Peru does too on the south side. And Peru has had railroad through the Andes since the 1850s.
@@celdur4635 Have you seen the Trans-Amazonian 'highway'? It was never finished. There are major portions of it, more importantly the most of the portions running through the Amazon jungle, that are unpaved. I have to remind people that the Amazon has the highest pluviometric indicence in Brazil and that particular stretch of 'highway' turns into a mudslide fest the likes of which off-road vehicles with full locking differentials struggle to pass through. There are several financial, legal and environmental issues to overcome and it does not seem likely that it'll happen anytime soon. One of the usual 'modus operandi' of the succeeding governments in Brazil is to simply pass the bucket to the next guy when the issue is too thorny to be effectively tackled. In short, it's a high political risk project and no one really wants to touch it with a 10 ft. pole, even if it does benefit Brazil as a country.
@@Hystericall Brazil: Beer? Hold my cachaça...
I visited Peru a few times in recent years. I stayed with a Chinese-Peruvian family for little on my last visit. Yeh I was surprised to see a Chinese population established there. Not like the Chinatown I know of course, but they are China
They have been there for centuries. You all remember that Chinese immigrants built the US railroads right? The only reason there aren't more Chinese Americans was because of the Chinese Exclusion Act of the 1880 that prevented immigration to the US until well after WW2
Peru has the largest population of people with Chinese ancestry all of Latin America. There was a large Chinese immigration to Peru in the 1800's.
Always appreciate your informative shipping logistics news Sal. Watching from the PHILIPPINES.
Outstanding overview
Thanx
These Chinese loans are really strategic. They grant collateralized loans against infrastructure so that in the event of default, they take control of infrastructure. This is what a producing and saving nation does, this is part of the Cantillon Effect I mention all the time.
Thanks Sal
They learned from the best. "Confessions of an economic hitman" is an excellent read on how we pioneered colonialism 2.0
whereas Am3ric4 just b0m6s and blackmails other countries.
The joke used to be that the Chinese copy products. But they also decided to copy the US "how to be a superpower" playbook, and even improved on it.
@@BoredSquirell RULE NO 1. Make stuff people ant to buy.
@@maxstrong1999 Very good book. Highly recommend to anyone who wants to know how corporate, banking and national greed works.
If anyone can build a railroad through those mountains at this time, China can.
Coming to Seattle, bring your heavy duty rain gear the Pineapple Express is locked in.
Such port only 1.3 billion dollars? That's just little more than Kamala Harris campaign spending.
It depends on who is building it. In the West, it will probably cost three times as much and take three times longer.
Chineseum concrete & steel is cheap
While America Dragged the UK and AUstralia into endless wars... China invested in their future... Ageing infrastructure, archaic import laws and ageing cargo fleet that is not being replaced. America is doomed to fail... it is far too broken to fix.
@@elzach0And Americunts bridges and railroad collapse like Lego
@@elzach0 China offers reasonable pricing, whereas in other places, the quote even includes the cost for a politician's heated pool.
The other point to think of is because of the massive amount of trade into and out of China, it would be beneficial to have less ships, of larger size, going through Chinese ports, to cut congestion in those ports.
NYC wharf worker are getting paid USD $67/hr after the last union strike, they also stopped the planned automation of the harbour. Peru's New wharf is fully automated, with Robotic trucks and cranes That can work 24/7 and are able to pack hundreds of ships per day which would save cost for both Exporter and importer, the New harbour and railway system connecting neighboring countries will be able to provided double digit growth for Peru for the next Decade.
Well done China and Peru 🎉
Thank you Sal, you rock. Loving your shirt also.
Enlightening as always. Thank you.
That is a master stroke in geopolitics and a coup in global trade - definitely a game changer.
This video as well as all your earlier ones are why I've sent letters to President Trump's administration to make you Secy. Transportation. Fabulous analysis. Just tremendous.
What! Isn’t that post slated for Marjorie Taylor Green? We also need Sarah Palin in the executive administration. We don’t need any highly educated people. They are the elites, not.
Watch kevin. Inside china business channel on youtube. He is ex us army. A business man in china. The best channel
Thanks for another clear video!!!!
Wonder if there’s a connection with Blinkens Peru Railroad project
Pure American cope. America built a railroad in Angola, which China will just use to ship their raw materials to their port for their profit
US wants to save face for abandoning Peru for decades with something. They are also building a SpacePort in north Peru. Although Peru will invest 1 billion also.
There is no connection. The major of Lima is a businessman who is the founder of the Cusco - Machu Picchu private train service. So, he has contacts and was able to get a donation from Blinken (California's used trains that are being replaced). The major will use the trains to provide a transport to the suburban towns in the east of Lima. The government of Peru is currently in the last design phase of a train route from Callao (Peru's main Port until Chancay) to Ica, through a government to government contract with the United Kingdom. The train to connect Callao to Chancay it is just being designed. A US$9 billion road to connect Lima with the Andean central node is being developed through a government to government contract with France. A multibillion irrigation project is being developed with a government to government contract with Canada. Biden, not to lose face, signed the agreement as per the Peruvian government request to get NASA support to develop a private project for a space launch site. In conclusion, the US is not actively doing any business in Peru.
Great doc. No propaganda nor smear detected till 50%, unlike pretentious DW . But I hv already subscribed!
Enjoy Seattle! It’s beautiful, even in the pouring rain.
"It's really having problems with some other nations." In the SCS? Nope, it's really just the Philippines. Its other territorial disputes (like with Vietnam and Indonesia) are no more serious than what those countries have with each other. Anyone who actually lives in the region knows these countries are constantly stepping on each other's toes and arresting each other's fishermen. Western media outlets like to frame it as China versus the entire region when its relations have been fairly smooth despite the territorial disputes, the only real exception being (again) the Philippines.
US turning its former colony into a proxy
US behind the Philippines provocations. Marcos does as he's told or the stolen billions his daddy stole will never be unfrozen. All of a sudden you see the new US bases in Philippines. Philippines is still a US colony and vassal state.
Countries have a right to do whatever works for them in shipping. If Trump does not like their strategy, oh well.
Hey Sal. Watching from Tennessee.
Nice one Sal.
Powerful! Meanwhile Blinken had to come out and sell a mini-deal of some California private train company selling a few old diesel engines to Peru, claiming the US was also investing in infrastructure in LatAm 😂
Who is Biden? Blinkie is going down history as the Gaza Genosider.
Thanks Bro " Heads-up"
The Chinese version of the US Marshall plan post WW2?
Another issue; much of the US agricutural production; soybeans, corn, grains, etc., is eported to China. China may be seeking to develope an alternative source for these products in South America and is developing port facilities to efficiently transport them to China.
Too late for US farmers. All the corn and soybean storage is full and prices have tanked. China has been developing alternate sources of supply for more than decade to protect themselves from sanctions.
natural deep ocean harbor no need for dredging the bottom sea floor
Chinese press were talking about a port project in Vladivostok, not sure how far along that is. They were referring to and old port Haishenwai that they used to have near there in the old days. I'm sure it's on their mega port alternate routes list. If a war breaks out south they can truck exports to there.
That new deep water port will easily handle the new Chinese Aircraft Carriers.
Pretty slick move!
After Americas built out military bases in islands seized in the south China seas , its China,🇨🇳 turn now
BINGO! My thoughts exactly!
I seem to remember that years ago, Chinese owned companies were contracted to run the ports at both ends of the Panama Canal. Was that ever true and if so is that still true.
Also the line in Brazil that takes iron oar from the interior to the Brazilian coast.
China also owns the largest iron ore mine in Peru located at Mancora, near the Nazca lines. China also owns a controlling interest in Peru's largest copper mines.
This will create a large incentive to build a railway across the andies, and china has quite a bit of experience now with building such projects. Brazil's grain production will only go up once that route opens up. Bad news for American farmers, since Brazil can do it cheaper and it will be tariff free.
That's what I was wondering about. 🤔
If there's money and world political influence to be gained (which there definitely would be) we can be sure the Chinese will do it.
China has written off America altogether I think. It's a big world full of new markets. They don't need us.
Peru has had railroad in the andes since 1850s. New lines need to be built and current ones modernized, but it has been done for 170 years now.
Really appreciate the insights. ❤❤❤
Monroe Doctrine? Never heard of it!
Thank you.
Rail across the andes has existed since the 1850's. For massive bulk transport of Brasilian cargo on top of Peruvian mines it needs to be modernized and it doesn't have connection to the Peruvian Amazon so that would need to be constructed. But navigable rivers exist and highways bridging Peru and Brazil also exist.
Rail to the Andes, not across the Andes. There is a road that connects the South of Peru to Acre in Brazil. That is the area where Brazil grows soybeans. However, the size of the trucks the Brazilians use for export are too large for the route that goes across the Andes. A rail road needs to be built to be cost competitive.
Its off to a more than rocky start with the worlds economies going into contraction. How long to recoup the expense and service the debt?
Could you do an analysis of the port as a transshipment point for cargo coming from Asia to US East coast ports via Panama Canal..? That would seem to be the biggest advantage.
That's not what it's for. US has China on its brains. Do you realize how huge the new trade between China and Brazil is? All the agriculture the US was selling to China pre Trump is now bought from Brazil. All of it.
God Bless you
The maritime Silk Road has the potential to be best way for development of the global South. And all that for the price of two dozens Beverly Hills mansions.
Back on the 1980’s when were desperate for Chinese products, all you had to do was float a ship thru HongKong harbor get new paperwork and now origin of products is Hong Kong and the u.s. loved it!😊
Thanks!
I think it's a good move. I hope they can behave, and we can stop acting like everyone is the enemy.
Why is the US furious and raving mad over the opening of this new Peruvian port ?
US ability to know exactly what goods are shipped in and out of South American countries will be significantly reduced in future since these huge container ships do not need to use the US-controlled Panama Canal anymore.
FYI on Chinese pronunciation:
X is pronounced like “SH” in She or shop. So Xi is pronounced exactly like the word “She”
However words with Sh in Chinese is pronounced differently - think of how a California Valley girl says “for sure”. Or how you say the word shirt. Notice how you say the “sh” in “she” and “shirt” slightly differently - your tongue placement is different.
That's what Xi said.
YES great Mega port guys. The good old Ch in of A. Make China mega great
So, what happened to the super large tanker ships? Are they still around? Is it really more cost/time effective to transfer to a smaller ship in Peru to take containers to the West coast of the US or through the Panama Canal or shipping direct?
Damn those Chinese , 200 years of capitalism and now Peru will be able to export properly
Doesn't China own a majority of the port? Damn capitalism indeed!
Does the US have a port for those mega ships? If not, why? Perhaps I missed the information.
INTERESTING!👍👍
It is supposed to generate 4.5 billion USD annually in revenues.
The road/rail network will cost a boatload of money, way more than this port. Kinda weird to me to sail these TEUs all the way across the Pacific just to wait for another ship to move them somewhere else. That's why I'm not in the shipping business I guess.
Well think of airplanes. You got international flights between countries which only the big jet can do commercially into the larger airports. But the passenger may then have to take a connecting flight to a smaller town hundreds of kms away to reach their destination
I’m wondering… if to increase capacity, as you said Sal, for these potential future ships to carry 27000 or even 30000 TEU, beam cannot be increased due to current crane outreach, so only length can be increased, how long would those ships be? Knowing that the huge 24000 TEUS have a length of 400 meters, and that sounds already crazy to me, are we talking of about 500 meters? Can that be achieved strength wise? And what would that mean for the maneuvering capability? That size of ships would only be used on oceans, I can’t imagine that size in Singapore and Malacca straits or English Channel-Dover Strait - North Sea… There must be a limit somewhere…
Wasn't the Chinese supposed to help built a new canal in Nicarauga? What happened there?
You can never have too many ports. Lots of stuff gets exported to South America and lots of raw materials and food products can be exported to China.
Odd place to build a major container port since there are few rail links to much of South America and no rail links to North America. Seems like a feeder port where their is parking containers for transshipping on smaller vessels
wonder who will work there
It's mostly automated...
If the routes shown on the map between Peru and China are any indication, using that route as an alternative to the Malaca Strait will be a nonstarter as. It passes by Hawaii. It would be hard for Chinese vessels to get out far enough to avoid being attacked in the event of a war. That's assuming the vessels can even make it past the first island chain.
They're not doing this in preparation for direct conflict. They have Russia for that. This is to expand economic dominance so that we have no option but to initiate direct conflict to maintain primacy.
It won't protect China from a US blockade, but it will from conflict in Eurasia.
@@djinn666 oh shit, someone actually knows whats going on.
Thanks for the update, Professor. This is a great way for China to give its population jobs. Years of employment will be created from developing needed infrastructure and transportation routes throughout the area and running it all. It will be interesting to see how the facilities hold up. China is really putting the moves on its targeted countries and markets.
can the world file a class action lawsuit billing the houthi for added costs to the world trade? that'll teach'em 🙂
china can stop houthi , but they will tackle them later . right now just focus on development ang growth .
Brasil has Recife, a natural candidate.
Has no one noticed that this is a fully automated, unmanned port? There’s no fear of dockworker strikes or the port being nationalized under different governments
Workers will be employed in more productive sector.
Wow! will US costs go up to consumers?
This is great information but do you ever step back and wonder what the hell we're doing. Life was good before we had such a systems flow of goods.
It was so much simpler in the mid 1950 when the first container ships were launched. Since then the world's population has tripled and helped make things a lot more complicated.
Before the East India Company?
I understand the USA cannot be the first in everything..... But this? In conjunction with all the Pacific Ore Mineral Rights as well?
Thanks Kissinger
Do you think Blinken and the new trains the US paid for are connected to this ?
I think it's America's attempt to stay relevant, but it really falls short
Peru ended up buying that scrap for $6 million.
The host is too focused on China. This was a Peruvian private project that Cosco was savvy enough to become partners with Peru's Volcan (mining company). Cargo from China and Korea takes 35 days to arrive to Callao. All Asian cargo is trans shipped in Long Beach, California or Manzanillo, Mexico. With the new Chancay route travel time is reduced to 23 days. Freight cost is also reduced by 20%. Thus, it opens up new business opportunities for cargo from Asia to the Pacific Coast of South America.
There were plans to create a Land Route across Chile to Argentina
The Chinese could accelerate this plan cuz the Cape is NO FUN
Then there was that film with Kinsky involving dragging a ship across a River Portage
How long did it take to build the port?
How long from proposal to construction start?
They started development in 2019, but it went into full construction in 2021.
@@wgowshipping That is quick no? Unless there was already a lot of the infrastructure already in place.
@@JohnnyMotel99It’s very very likely “tofu-dreg” as they say. In other words, DON’T invest now.
@@JohnnyMotel99
... Tofu Harbor.
@@JohnnyMotel99 When you're starting from scratch, things move a _lot_ faster.
Watch the Trump administration slap tariffs on anything shipped into the port!
How long until China talks Panama into letting them open up a full-blown four ship wide passage through the isthmus instead of the inadequate canal?
You can say it's impossible for a number of reasons, but that word apparently doesn't quite exist to them!
@richarda996
Like I said, impossible. Not to take contention with you, but as opposed to the W coast of S America? I believe Peru is more stable than Chile, but isn't it all in the ring of fire. Don't we build right on top of volcanos and faults already?
Doesn't make sense, since ships will continue to get bigger and bigger. Panama canal can't keep up.
@celdur4635
It doesn't or does make sense?
How is Mexicoplanned port going to affect China's cargo shipments to North America?
Interested in location of port relative to surrounding geography especially how fast mountains leap from beach to super high also local extreme ? Weather. ❤
I had a discussion about the huge new ships 🚢, not being able to dock in any ports here in New Zealand, eventually blocking us out, thus we didn't agree with the belt and road scam, 😮😮obviously the possibility of it coming about in the future,
Such a scam that 150 countries signed up. Go figure.
Trade route redundancy is pretty important to the Chinese, because our experts keep threatening various choke points 😂
Pls take the time to visit portland and the spruce goose museum where maritime Henry Kaiser developer did in fact influence usa to make a ship that fly and I will have the opportunity to give you our “Ship happens “lapel pin for your rare tv jacket outfit. .
no containerships ever round Cape Horn?
What about the new Mexican Interoceanic Railway Line? It seems like it would be another way for China to get goods into the US.
i guess they are playing wait and see game . becoz if mexico get out of US hands then ...
Sounds like China is going to give port of LA and Long Beach the middle finger 😆
US fast becoming hostile to free trade. Soon the freighters will stop coming altogether.
Those two ports will no longer be the transshipment hub for containers going to South America.
Did the Secretary of State confirm that the United States had a part in building this too?
The USA has had no part in building the Port of Chancay.
@@mikedx2706 if anything, the usa tried to destroy it.
Puerto Antioquia in Colombia?
We (the US) is already having issues selling grain to China, this is another complication. Inevitable, but still, not good for us.
It's game over already. China will never go back, why when US has turned racist and hostile.
Sky didn't teu US promoted Peru's new facilities?
Or others in different points of the world?
Well, Chin a became the World's Mega Factory.
Unfortunately, the US followed another Road -- deindustrialization!
Industrial Capitalism was replaced by Financial Speculation -- giving rise to a Casino Economy.
G.E represents an excellent exsmple.
And under the (blind?) Guidance of Jack Welsh, practicaly brought to an end it's gigantic Industrial Production, becoming instead a Financial Company.
Welsh became a GURU of that perspective, lecturing his Vision around the Country.
And Corporate America totally embraced his Vision.
Accordingly, most American Industrial Production was transfered to China.
Europe and Japan followed suit , although to a lesser extent.
In sum, Europe and the USA desperately need to import Chinese, South-Korea and Taiwan produced goods.
A sad reality widely evident during COVID 19.
Even Masks, gloves and some basic medications had to be imported from India and China