China increases presence in Brazilian ports
June 10 (UPI) -- China is consolidating its control over critical logistical hubs in Brazil through its state-owned enterprises.
Its latest move in Latin America was the acquisition of a 70% stake in Vast Infraestructura, which operates the Port of Açu's only private transshipment terminal for very large crude carriers in Rio de Janeiro.
The $714 million deal puts China Merchants Port Holdings, or CMPort, in charge of a vital asset for Brazil's energy exports, as nearly 30% of the country's crude oil passes through Açu.
This marks another major move by CMPort, one of the world's largest port operators and a Chinese government-backed company. In 2018, CMPort acquired 90% of TCP Participações, which operates South America's largest container terminal at the Port of Paranaguá.
Beyond these direct purchases, Chinese firms are involved in projects at the Port of Santos -- Latin America's busiest port -- as well as in the construction of a new terminal in Maranhão, in northeastern Brazil.
Investments are not limited to ports, but also extend to the construction of rail infrastructure to transport grains, minerals, and other commodities to Asia.
Brazil is just one focus of China's global port strategy. In Peru, the Chancay mega-port, built and operated by China, is set to become a major trade hub between South America and Asia, potentially reducing reliance on the Panama Canal.
Chinese state-owned enterprises are executing a broad strategy to acquire and develop port infrastructure worldwide.
"This undoubtedly increases their geopolitical influence and secures vital strategic interests. It also consolidates a stronger global maritime presence and achieves effective control over crucial sea routes," said Chile's Center for Competitive Intelligence Research and Studies.
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