PERU’S MEGA PORT OF CHANCAY AND ITS POTENTIAL FOR THE AMERICAS’ BUSINESS

Lorena BERNALES

Marketing & Communications Manager - TGS Peru & Chile

https://tgs-sarrio.pe

TGS Sarrio & Asociados

Foreign direct investment between China and Latin America is booming, driven by infrastructure projects such as the Port of Chancay in Peru, leading companies to increasingly seek specialized advice to navigate complex regulatory and cultural environments.

The Insight Hunting SEO study prepared by Impulso’s Data Intelligence Unit*, conducted between January 2022 and May 15, 2024, analyzed more than 3 million searches from people in Peru (+50 thousand), Chile (+180 thousand), USA (+100 thousand) and Spain (+80 thousand) who were interested in topics related to the benefits that the new Mega Port of Chancay will offer.

The first thing that the study shows us is that people and companies in Chile, USA and Spain interested in the subject have multiplied exponentially, from 2022 to 2023 by +351%, and from 2023 to 2024 by +157%. The reasons for the interest in the Port are clear: the strategic location on the Pacific route (44.1%), modern infrastructure (40.2%), connectivity and logistics network (35.1%), economic and commercial benefits (33.5%), efficiency and speed (30.9%), new commercial routes (29.1%) and decongestion of other ports (28.1%).

Finally, the analysis shed light on the sectors with the greatest interest in the Port, which are: food and beverages (16.3%), foreign trade companies (15.7%), electronics companies (11.1%), shipping and logistics operators (10.1%), pharmaceutical and health sector (10%), automotive sector (9.5%), telecommunications providers (9.4%), agriculture and agribusiness (9.1%) and energy and mining (8.8%).

In a recent interview, José Luis Sarrio, partner at TGS Sarrio & Asociados (Peru), commented that Chinese investment in Peru reflects a whole policy outlined by the Chinese government. “In Chinese culture, investment decisions are made under a strategy of return in 100 years or more. In addition, Chinese companies’ investments do not come alone, that is, they bring with them all the infrastructure for their businesses, such as banks, telecommunications, etc.; so, we must seek to compensate this investment with local businesses.”

“We must cover all the points where there is an unmet need. Investment will be needed in infrastructure for business and tourism (hotel capacity, communications, restaurants, transportation, etc.). And all this under the premise of citizen security, which is indispensable for foreign investment”, added José Luis.

Peru is strategically located in Latin America, on the Pacific route, as an option to decongest the MexicoUS border ports with more commercial traffic and a great opportunity for both Peru and the entire region.

Along with the Port, a Free Trade Agreement with China will be signed in November, but these treaties are not accompanied by double taxation agreements. José Luis explained: “this means that the tax navigation in the Peruvian treasury, as well as in the other Latam and Chinese countries, means a risk in the return of taxes, fines and tax compliance, which makes it important to choose well who accompanies you in that navigation”.

In response to this growing demand, in TGS we have established a Latam Desk China in the city of Shanghai, strengthening our international network and its ability to offer comprehensive and specialized solutions to its clients in America and Asia. With this we seek to be a connection or a kind of intermediary between the Latin and Chinese businessmen, supporting both parties with culture, legislation, time differences (13 hours with Peru), ways of working, money transfers, tax issues and other barriers that may arise when doing business. This new connection point facilitates direct interaction with Chinese clients, operators and suppliers, boosting the business of its clients in a key market.

According to the Insight Hunting SEO study prepared by Impulso’s Data Intelligence Unit for our Firm in Peru**, where 354 thousand people were tracked, reflecting a growth of 400%, from 2019 to date, in relation to online searches about business with companies from China.

Among the most requested services are consulting and advisory (89%), logistics and transportation services (62%) and legal and regulatory registrations (44%).

In addition, it was recorded that people interested in doing business with China seek advice and audits to ensure the transparency and reliability of business operations in China (21%), as well as what advice to hire to start business with Chinese companies (20%), why they want to gain market knowledge (52%), legal and regulatory compliance (50%) and financial transparency (44%).

Likewise, a growing interest was identified in people looking for Chinese companies in relation to Peruvian companies, where it was found that the most sought-after services are: legal consulting and advice (79%), financial and tax consulting (40%) and market research and entry strategies (40%).

Peru is strategically located in Latin America, on the Pacific route, as an option to decongest the Mexico-US border ports with more commercial traffic and a great opportunity for both Peru and the entire region.

And in TGS Sarrio & Asociados (Peru), as well as in all Latam member firms, we can provide services with a local business treatment, and specialized at regional level, with a diverse range of consulting services that supports our clients to preserve their value over time.

Sources:

*Insight Hunting SEO study prepared by Impulso’s Data Intelligence Unit on the interest of people/companies from Peru, Chile, USA and Spain in the Port of Chancay (from January 2022 to May 15, 2024).

**Insight Hunting SEO study prepared by Impulso’s Data Intelligence Unit for TGS Sarrio & Asociados on the interest of people seeking consultancy and audits to do business with companies from China (from 2022 to July 15, 2024).

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