Berg 01 worker stands in front of a map depicting the massive Port of Chancay in Peru

China Nears Completion of Large Port in Peru With Dual-Use Capabilities

By Ryan Berg

02/28/2024|OE Watch, Product

A worker stands in front of a map depicting the massive Port of Chancay in Peru.

“Cosco Shipping seeks to improve China’s access to minerals from the mountains to the coast, and from there execute shipments through the port of Chancay.”

Weeks after the tenth anniversary of its Belt and Road Initiative (BRI), China is on schedule to inaugurate one of its biggest port development projects to date: the $3 billion Port of Chancay, just north of Lima, Peru. In recent years, Chinese-owned and operated deep-water ports around the world have captured the attention of many analysts for their dual-use potential, for both commercial and military purposes.[i] In the past, China has used its owned and operated ports as logistical points and ports of call for the People’s Liberation Army Navy (PLAN).[ii] Chinese-owned and operated ports also offer the potential for China to track data on trade flows, which could open the door to economic coercion against the host countries as well as other third-party countries.

In response to rising questions about the Port of Chancay project, Peruvian media conglomerate RPP reports the Peruvian government maintains that the port is purely economic in nature and that the local population will be compensated for displacement and any environmental damage to the surrounding areas. The second excerpted article in the Peruvian energy and mining-focused news outlet Energiminas, says that the port will play an important role in helping China to solidify its dominant position in Latin America’s critical minerals supply chains.[iii] Peru also maintains that the port, built by Chinese state-owned enterprise Cosco Shipping, will save an average of 10 to 12 days on goods traveling to Asia from Latin America. Further, the Peruvian government has confirmed its commitment to the project and stated its goal is to leverage its role as host of the Asia-Pacific Economic Cooperation in 2024 to officially inaugurate the Port of Chancay. China has dozens of contracts to upgrade, build, and/or operate deep-water ports in the Western Hemisphere, an economic reality with implications for the region’s operational environment. Given China’s past use of deep-water ports for naval port calls, the Western Hemisphere may soon witness an uptick in the PLAN presence.

Sources:

“Puerto de Chancay estaría listo para iniciar funcionamiento a fines de noviembre de 2024 (Port of Chancay would be ready to start operations at the end of November 2024),” RPP (Peruvian radio, television, and print media company located in Lima), 23 October 2023. https://rpp.pe/economia/economia/puerto-de-chancay-estaria-listo-para-iniciar-funcionamiento-a-fines-de-noviembre-del-2024-noticia-1512135?ref=rpp

The port of Chancay would finally be inaugurated in November 2024 with cutting-edge technology…‘we hope to finish the port at the end of November 2024 and inaugurate it on that date taking advantage of the APEC Summit’…‘We have more than 3,000 families registered with a baseline of the conditions of their house and with a commitment letter from Cosco, responsible for solving any environmental damage,’ said an official with the company.

“Puerto de Chancay evalúa mejoras en acceso de inerals de sierra de Oyón a la costa, señala Gobierno Regional de Lima (Port of Chancay evaluates improvements in access of minerals from the Sierra de Oyón to the coast, says Regional Government of Lima),” Energiminas (Peruvian news outlet focused on the country’s energy and mining sectors) 18 October 2023. https://energiminas.com/puerto-de-chancay-evalua-mejoras-en-acceso-de-minerales-de-sierra-de-oyon-a-la-costa-senala-gobierno-regional-de-lima/

The Regional Government of Lima indicated that the operator Cosco Shipping seeks to improve China’s access to minerals from the mountains to the coast, and from there execute shipments through the port of Chancay…For the Peruvian Ministry of Transport and Communications, this megaproject, led by the Chinese company Cosco Shipping, is key for international trade and will be a hub that will redistribute cargo from the countries of Chile, Ecuador and Colombia as well.

Notes:

[i] For a useful dashboard of Chinese-owned and operated ports around the world, see: “Tracking China’s Control of Overseas Ports,” Council on Foreign Relations, 6 November 2023. https://www.cfr.org/tracker/china-overseas-ports

[ii] Researchers tracking Chinese port calls have found that the PLA Navy has called at about one-third of the nearly 100 Chinese owned and operated ports overseas. See: Jennifer Rice and Erik Robb, “The Origins of Near Seas Defense and Far Seas Protection,” CMSI China Maritime Report, no. 13 (February 2021).

[iii] For more information on China’s role in Latin America’s minerals exploration and production, see: Ryan C. Berg, “China Deepening Cooperation in Latin America’s Sizeable Lithium Sector,” OE Watch, 01-2023. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/434262

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Image: A worker stands in front of a map depicting the massive Port of Chancay in Peru.
Source : https ://commons.wikimedia.org/wiki/File :Puerto_Chancay_2.jpg
Attribution: Wikimedia, CC BY-SA 4.0 DEED

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Finch 01 President Putin and Chief of General Staff Gerasimov Vostok 2022

Russia Claims Victory in Vostok 2022 Exercise

President Putin and Chief of General Staff Gerasimov, Vostok 2022, 6 September 2022.

One of Russia’s large-scale, annual military exercises, Vostok-2022, took place from 1-7 September. As with such exercises, it was widely covered in the Russian media, and as the brief excerpt from the Ministry of Defense’s TV Zvezda news network indicates, Russian forces again proved victorious. The article also stresses that Russia has not been isolated by its aggression against Ukraine, pointing out that 10 countries participated: Algeria, Armenia, Azerbaijan, Belarus, China, India, Kyrgyzstan, Mongolia, and Tajikistan. The article says that President Putin arrived at the Sergeevsky training ground to watch the final part of the exercises from a specially equipped command post. He watched his soldiers taking lines, liberating settlements, and forcing enemy retreats.

Sources:

Maxim Petrenko, Sergey Lebedev, “Враг уничтожен: как прошли учения Восток-2022»на полигоне Сергеевский (The enemy is destroyed: how did the exercises Vostok-2022 at the Sergeevsky training ground),” TV Zvezda (Ministry of Defense news network), 6 September 2022. https://tvzvezda.ru/news/2022961429-48GVw.html

Vladimir Putin watched the maneuvers from a specially equipped command post. From there, he fully assessed the operational situation. Real-time data came even from the distant borders of the huge test site. All thanks to cameras installed in the fields with 32x magnification.

At the same time, the Chief of the General Staff had a connection with all the commanders-in-chief. The most up-to-date information was received from the training ground to the Supreme Commander-in-Chief, the technical characteristics of the weapons used were shown on the screen.

According to the legend of the exercises, the mock enemy “Vostochnye” attacked the “Northern” and their allies, wedging 200 kilometers into the depth of defense. The enemy was stopped, suffered losses, but retained reserves. From this point, the action begins to unfold - a grouping of troops, supported by artillery and tactical landing forces, hitting the enemy, taking lines and liberating settlements. Massed strikes by rocket troops and artillery, breaking the enemy’s reserves as well, are forcing the enemy to retreat.

A special feature of Vostok this year is the creation ofa coalition grouping of the armed forces of ten countries - Russia, Azerbaijan, Algeria, Armenia, Belarus, India, Kyrgyzstan, China, Mongolia, Tajikistan. Operational groups of the defense departments of Kazakhstan, Laos, Nicaragua and Syria were also involved….…The participants of the maneuvers noted that all the goals of the exercises were fulfilled. The issues of ensuring military security in the Eastern Region have been worked out.

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Image: President Putin and Chief of General Staff Gerasimov, Vostok 2022, 6 September 2022.
Source: http://en.kremlin.ru/events/president/news/69288
Attribution: CCA CA 4.0 Intl

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Russian Navy Weaponizes Shipping Containers

Shipping Containers.

For the defense of Russian combat and auxiliary ships, an electronic warfare (EW) system is being developed. The EW system will be placed in ordinary 40-foot shipping containers.

The accompanying excerpted article from pro-Kremlin daily newspaper Izvestiya describes Russian efforts to place electronic warfare systems in standard 40-foot shipping containers. The Russian Navy is also experimenting with other shipping container-based weapon systems involving air defense, anti-ship, and surface and underwater unmanned reconnaissance capabilities. These shipping container-based weapon systems are not only intended to augment the capabilities of the Russian Navy’s ships, but also auxiliary ships (tugboats, transports, fuelers, etc.) that support the Russian Navy, and commercial ships if necessary. Shipping container-based weapon systems are likely to become more important to the Russian Navy as it transitions from larger ships, such as cruisers and destroyers, which have many capabilities to smaller ships, such as frigates and corvettes, with fewer capabilities. These shipping container-based weapon systems will permit these small vessels to expediently and cheaply add capabilities as required.

Source:

Roman Kretsul, “Шумящий патруль: российские корабли защитят

системы радиоэлектронной борьбы (The ‘noisy’ patrol: Russian ships will be protected by electronic warfare systems),” Izvestiya (pro-Kremlin daily newspaper), 8 September 2022. https://iz.ru/1392104/roman-kretcul/shumiashchii-patrul-rossiiskie-korabli-zashchitiat-sistemy-radioelektronnoi-borby

For the defense of Russian combat and auxiliary ships, an electronic warfare (EW) system is being developed. The EW system will be placed in ordinary 40-foot shipping containers. Thanks to this, the system can be easily installed on the decks of ships and vessels. Such protective "boxes" should reliably protect ships and vessels from enemy missiles and drones by way of electromagnetic interference. According to experts, as a result, this decision will significantly strengthen the protection of the country's coastal regions.

The Project 22160 ‘Vasily Bykov’ patrol ships will be the first to receive this electronic warfare systems. In the future, auxiliary vessels of the Russian fleet - tugboats, transports and others – could also acquire it…Initially, a weaker electronic warfare system was installed on Project 22160 ships, military historian Dmitry Boltenkov told Izvestia.“Apparently, they created a more powerful solution, of operational or strategic designation. Containers allow you to put the system on different ships,” the expert explained. “If necessary, it will be possible to build up the electronic warfare system of ship groups. They will be able to enter a given area and, in fact, completely “turn it off”. First, they will suppress drone control channels and communication systems. It will no longer be necessary to drive an electronic warfare vehicle onto a landing ship, instead they will simply put a container.

The Navy is also actively testing new container modules — with weapons and with various auxiliary equipment —including the Redut and Pantsir-M air defense systems, container modules with anti-submarine equipment, and container modules with cruise missiles. In particular, the Kalibr-NK cruise missiles. But the main possibility is that they can be adapted for the employment of underwater and surface unmanned vehicles of all types. This provides a reconnaissance capability over hundreds of kilometers…

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Image: Shipping Containers
Source: https://commons.wikimedia.org/wiki/File:Container_%E3%80%90_2205_%E3%80%91_SAKC_000411(0)---No,1_%E3%80%90_Container_pictures_taken_in_Japan_%E3%80%91.jpg
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Wood 01 Drift ice camp in the middle of the Arctic Ocean as seen from the deck of icebreaker Xue Long

China Developing Improved Equipment for Deep Sea, Polar Exploration

Drift ice camp in the middle of the Arctic Ocean as seen from the deck of icebreaker Xue Long.

“The Xuelong 2 is like a mobile laboratory at sea, sailing into many areas that were inaccessible in the past.”

China regards deep-sea[i] areas and polar regions as critical to its future development due to their abundant resources. President Xi Jinping even included them in his Holistic National Security Concept, which lays out domains that he regards as critical to China’s development and national security.[ii] However, both deep-sea exploration and polar regions pose significant technical challenges due to the extreme pressure or weather conditions encountered. As the following excerpts explain, China has made significant progress in overcoming these challenges.

The first excerpted article, from an early March 2023 edition of the official newspaper of China’s Ministry of Science & Technology, examines some of the equipment China has completed or is developing to explore deep sea and polar regions as part of its efforts to become a powerful maritime country. The article focuses on two technologies: icebreakers and deep-sea drilling rigs. The Xue Long 1 [GRLCUT(1] and Xue Long 2 [GRLCUT(2] icebreakers, originally based on a Ukrainian design, have improved China’s ability to explore polar regions. The article cites an acoustic engineer with experience studying polar environments, who highlighted how the Xuelong 2 had opened many previously inaccessible areas to exploration.

The latter half of the article focuses on deep sea drilling, noting the advances made with the “Manatee II” deep sea drilling rig, which is reportedly capable of operating at depths of 2,000 m or more and has set world records by drilling over 200 m into the ocean floor. A major priority for exploitation by this and future rigs is “combustible ice,” a mixture of frozen water and natural gas present on the sea floor in the deep sea. According to the article, the Manatee II has carried out exploration missions searching for combustible ice in many areas surrounding China, as well as for traditional offshore oil and gas deposits. Due to the experience from operating the Manatee, China has improved its technologies in this niche but important area, and the first of China’s next generation of deep-sea drilling ships is expected to be completed in 2024.[iii] It will reportedly be capable of drilling in waters deeper than 10,000 m.[iv] The minerals and natural gas potentially recoverable by these drills could create an economic bonanza and help China offset its reliance on imported energy. The second article is based on an interview with Sun Bo, Party Secretary of the China Polar Research Center Polar Research Institute of China, which is part of China’s Ministry of Natural Resources. Sun Bo noted how vital China’s second icebreaker, the Xuelong 2, completed in 2019,[v] has been for China’s polar exploration efforts, highlighting that having two icebreakers now allows China to effectively support research teams at both poles at the same time. While these articles underscore how China has clearly made important strides in overcoming technical bottlenecks, it might now face legal ones. The UN recently concluded negotiations about exploiting biological and mineral resources on the high seas, which might constrain China’s activities in polar and deep-sea regions.[vi]

Sources:

He Liang [何亮], “科技扬帆，引领海洋探索挺进深蓝” (Science and Technology Set Sail, Setting a Course for Ocean Exploration into the Deepest Blue Sea), Science & Technology Daily [科技日报] (Official newspaper of PRC Ministry of Science & Technology [MOST]), 6 March 2023. http://digitalpaper.stdaily.com/http_
www.kjrb.com/kjrb/html/2023-03/06/content_550015.htm?div=0

Accelerating [China’s] development into a maritime great power and making good use of marine resources is not possible the important support of science and technology. To protect the marine ecological environment, it is necessary to strengthen basic research and fully understand the ocean’s riches; to develop marine resources, it is necessary to address the urgent requirements of improving development of technologies and equipment of scientific research for technology and equipment, and concentrate efforts to develop more “national strategic weapons.”[i]

“With the help of more and more advanced equipment, China’s polar scientific research has maritime, land and aerial capabilities.” Yin Jingwei [殷敬伟], vice president of Harbin Engineering University[ii], has long been engaged in research on polar acoustic technology….According to Yin [Xuelong 2’s] superior ice-breaking capabilities allow more scientific research facilities and supplies to be transported into the Antarctic regions. “It is like a mobile laboratory at sea, sailing into many areas that were inaccessible in the past.”

As of September 28, 2021, China has completed 12 Arctic expeditions. However, China is not an Arctic nation, and its deep-sea and polar-related research work started relatively late compared to other countries, and its support capabilities have also been limited to a certain extent. There are still many weak links and capabilities in the fields of polar science and technology research, polar equipment development, and deep-sea polar exploration. missing.

Yin Jingwei told the Science and Technology Daily reporter of that China does not yet have nuclear-powered icebreakers and underwater equipment capable of breaking ice in the polar regions, and the ability to collect maritime below the ice is also very weak. Additional efforts are needed to overcome technological and environmental hurdles to move forward.

“深耕新疆域，推动极地科考再上新台阶——海洋领域专家谈建设海洋强国” (Exploring New Frontiers and Taking Polar Scientific Research to a New Level—Maritime Experts Discuss Building a Maritime Great Power), Science & Technology Daily [科技日报] (Official newspaper of PRC Ministry of Science & Technology [MOST]), 19 January 2023 http://digitalpaper.stdaily.com/http_
www.kjrb.com/kjrb/html/2023-01/19/content_547740.htm?div=0In today’s world polar regions have become a “new frontier” for development and a focal point for global governance, a new high ground for technological competition, an area with new sea routes and a new source of resources. The China Polar Research Center of the Ministry of Natural Resources adheres to the principle of “understanding, protecting, and using” these regions proposed by General Secretary Xi Jinping, and is committed to providing support for China’s polar scientific research. China continues to improve its independent innovation capabilities and overall there is momentum to continue improvements. The China Polar Research Center independently built the “Xuelong 2” icebreaker with, filling a major gap in China’s capabilities required for polar scientific research and developed a way to use both the Xuelong and Xuelong two effectively in concert. This new pattern of “Double Xuelong” Polar exploration (one assigned to each polar region) has greatly improved the on-site support capabilities for China’s polar scientific investigations.

Notes:

[i] Deep-sea areas are typically defined as those below 200 meters. According to the US National Oceanic and Atmospheric Administration, 80 percent of the Earth’s ocean floor remains unmapped and unexplored. “How much of the ocean have we explored?,” NOAA [Accessed March 2023]. https://oceanservice.noaa.gov/facts/exploration.html

[ii] See: Peter Wood, “China’s Holistic Security Concept Explained,” OE Watch, 07-2018. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-singular-format/275650

[iii] The ship was developed by China State Shipbuilding Corporation’s (CSSC) 708 Research Institute and is subordinate to the China Geological Survey Bureau. The bureau also operates ships involved in mapping the seafloor in potential sensitive areas, which has drawn the alarm of nearby nations. See for example, Naoki Inoue, Tsukasa Hadano and Jun Endo, “Chinese survey ships straying into other nation’s EEZs, data shows”, Nikkei, 31 January 2021. https://asia.nikkei.com/Politics/International-relations/South-China-Sea/Chinese-survey-ships-straying-into-other-nations-EEZs-data-shows

[iv] “China’s first ultra-deepwater scientific research drilling ship achieved main hull penetration today” [我国首艘超深水科考钻探船今日实现主船体贯通], China Mining News [中国矿业报 ], 18 December 2022. https://www.cgs.gov.cn/xwl/ddyw/202212/t20221218_720062.html

[v] See: Les Grau, “China Developing More High Latitude Equipment”, OE Watch, 11-2019. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-articles-2-singular-format/337636

[vi] “UN delegates reach historic agreement on protecting marine biodiversity in international waters,” United Nations, 5 March 2023. https://news.un.org/en/story/2023/03/1134157

Notes:

[i] This phrase, 国之重器, is frequently used to describe strategically impactful or game-changing weapons systems (ballistic missile submarines, aircraft carriers etc.,) and civilian technologies such as nuclear reactors.

[ii] Harbin Engineering University is one of the “Seven Sons of National Defense,” which are universities that work closely with the Chinese People’s Liberation Army.

Image Information:

Image: Drift ice camp in the middle of the Arctic Ocean as seen from the deck of icebreaker Xue Long.
Source: https://upload.wikimedia.org/wikipedia/commons/8/8d/Teadlased_j%C3%A4%C3%A4l.jpg
Attribution: Timo Palo, CC BY-SA 3.0

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