China is planning to invest $1 billion in the Brazilian Port of São Luís as it looks for new trade partners while its trade war continues on with the United States.
As the largest economy in South America, Brazil falls behind smaller economic peers such as Peru and Chile in terms of containerized trade with China.
The new foreign direct investment will allow Brazil to better compete with its South American peers.
Using the Bluewater Reporting Country to Country Transit Analysis by Service tool, the container trade between South America and China can be measured.
For the purposes of this analysis, four of the largest South American countries in terms of containerized capacity and their relationship with China (including Hong Kong) will be observed. The four South American countries include Argentina, Brazil, Chile and Peru.
Peru currently has the strongest ties with China in terms of container shipping, with eight container services that have an aggregate capacity of 821,917 TEUs offered from Peru to China, according to BlueWater Reporting’s data.
Chile comes in second, with five container services that collectively deploy 584,165 TEUs of capacity offering slots to China.
Brazil takes third with four services offered to China that collectively deploy 381,117 TEUs, while Argentina comes in fourth with three services with an aggregate capacity of 330,986 TEUs.
As the heat map illustrates, Brazil will need to spur much more investment if it hopes to catch up with Peru and Chile.
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