The strategic development of Chancay and the existing infrastructure of Callao are set to significantly improve hinterland connectivity in Peru and South America, enhancing the competitive edge of Peru’s port system in the global market. As Peru’s primary port, Callao already has robust infrastructure and well-established connectivity with its hinterland. The Callao and Chancay terminal’s role as a key hub in international trade routes is essential in understanding its hinterland connections. The twin port complex development are locaqted in Lima region and are separated by 80 km. This hub is not just about serving the immediate geographical hinterland but also about positioning itself in global trade networks, which is a crucial aspect of the Port-Hinterland concept1 in the era of globalization. As a new trade hub on the Pacific coast, Callao-Chancay port complex offers Brazil and other South American countries an alternative export route to Asian markets. Both ports are likely to benefit from newly Ancon logistic park, which is an integrated transport system land port, including road, rail, conecting potential inland waterways in the Amazon river basin, further boosting their hinterland reach and port competitiveness.

This development could offer an alternative to traditional routes, reducing costs and transit times for Brazilian goods, particularly soybeans2. This move aligns with Brazil’s broader efforts to enhance its export infrastructure and improve access to Asian markets. The combined Callao-Chancay hub focus on integrating logistics and supply chain management into its operations reflects a shift from traditional, geographically-bound definitions of hinterland to a more functional approach. This approach considers the flow of goods, the efficiency of logistics chains, and the strategic positioning of the port in global trade networks, not just its physical location. This hub allows to manage an control larger areas more effectively, improving service levels for inland clients.

A new phase of port development called “regionalization” is identified in Callao-Chancay ports, where this hub has started forming stronger links with both foreland and hinterland systems in South America Pacific coast and further east towards Brazilian western regions such as Acre. The development of Chancay and Callao ports is poised to positively influence South American exports by addressing key barriers identified, such as transportation costs, infrastructure quality, and logistical inefficiencies3. Expanding port facilities to handle larger volumes of cargo efficiently reduces bottlenecks and wait times at the port, directly lowering the overall time goods spend in transit. By optimizing supply chain logistics—such as better planning and scheduling—goods can be moved more predictably and with fewer delays, by ensuring that the distance-related costs are minimized.

References

  1. Eleftherios Sdoukopoulos, Maria Boile. 2020. Port-hinterland concept evolution: A critical review. Journal of Transport Geography 86. https://doi.org/10.1016/j.jtrangeo.2020.102775. ↩

  2. Peter McMeekin - Grain Brokers Australia. March 26, 2024. Brazil contemplates Peru export pathway. https://www.graincentral.com/markets/brazil-contemplates-peru-export-pathway/ ↩

  3. Kara Carroll Tiller, Jean-Claude Thill. 2017. Spatial patterns of landside trade impedance in containerized South American exports. Journal of Transport Geography 58: 272-285. https://doi.org/10.1016/j.jtrangeo.2017.01.001 ↩