China Ocean Shipping Company, Limited (COSCO) is gearing up to commence operations at the Port of Guayaquil in November. The goal is to open an export route from Guayaquil to the new port of Chancay (Peru) and, from there, travel directly to Shanghai and Dalian.

Operation in the country will begin with the inauguration of Chancay, the mega-port under construction in the neighbouring country, where COSCO is one of its leading investors.

Details of this venture were revealed on August 13, 2024, following a visit by a company delegation led by Kunhui Wang, Chairman of Cosco Shipping South America Co. Ltd. They met with authorities from Contecon (the operator of the port of Guayaquil) and representatives from other associations such as the Ecuadorian Banana Exporters Association (AEBE). For José Antonio Hidalgo, executive director of AEBE, COSCO’s arrival is an advantage for the banana industry, which accounts for 60% of the containerized cargo exported by the country through its ports. “This means that the transit time to Shanghai will be only 28 days, seven days less than what we currently have on available routes, and for Dalian, 32 days, ten days less than today.” In addition to reducing travel times, there is also an expectation to expedite the customs clearance of containers, another hurdle that increases the cost for importers. “We hope that this will also lead to better logistical management. We have cases where the container remains up to 10 days in Chinese customs, unable to leave,” he says.

Having more direct routes to the Asian market improves the prospects of this industry, which seeks to bolster its sales to China, taking advantage of the tariff benefits granted by the trade agreement signed between Ecuador and that country.

“With the annual tariff reduction of 1%, by the time we reach zero, we will have significant growth, although we have already seen increases in sales over the last year,” he stated. 2023 the country offered 15.3 million boxes to that market, compared to 10.8 million in 2022. As of July this year, however, sales to that country already amount to 6.1 million boxes, most of them transported by the shipping line CMA CGM.