Early this week, as the COSTCO ASIA slowly sailed into the distance, the Yangpu International Container Terminal, also known as the Yangpu Port, ushered in a historic moment. This was the maiden voyage on COSCO Shipping's new Far East-South America West route.

The new route now begins at Yangpu Port, which will greatly improve logistics efficiency between Hainan and South American countries, reduce overall transportation costs, create a "two-way bridge" for the trade of specialty commodities between Hainan and South America, and further develop Yangpu Port into a global "two-way dual hub" port.

Yangpo Port (Photo provided by the reporter)

A Key Link for Direct Hainan - South America Shipping

The Port of Chancay in Peru is an important natural harbor and regional logistics gateway on the west coast of South America. The Port of Yangpu is the main port for the development of the Hainan Free Trade Port and an important hub for the New Western Land-Sea Corridor.

Previously, the route network of Yangpu Port covered China's coast and radiated out to southeast Asia, connecting ports along the Pacific Ocean. Now, Yangpu Port has been added to the COSCO Far East-South America West route as a core port of call, with an investment of 10 large container ships to ensure transportation capacity, furthering Yangpu Port's reach.

This optimization has created a key link in Hainan’s direct shipping route to the west coast of South America. Thanks to COSCO Shipping’s global route network, Yangpu Port is now able to connect the logistics chain from China's coast to Southeast Asia, the Pacific, and South America, strengthening the port’s position as a hub on the Western Land-Sea Corridor and changing the connection between the Hainan FTP and the South American market from 'transit and detour' to 'direct connection', laying an excellent foundation for trade facilitation after the special customs operations of the Hainan FTP commence.

Containers transport at Yangpu Port (Photo provided by the reporter)

From Logistics to Livelihood

After the start of island-wide special FTP customs operations, Hainan will need a more efficient and stable import-export mechanism connecting the domestic and international markets. The maiden Yangpu voyage on the new COSCO Shipping Far East-South America West route has achieved a stable one-way sailing time of 29 days, meeting this demand and setting up a 'two-way bridge' for the trade of specialty products between Hainan and South America, bringing economic and trade cooperation between the two places to a new level.

This new route makes 'going global' so much simpler. Hainan's high-quality tilapia and other frozen aquatic products no longer need to travel haphazardly in fits and starts on inefficient journeys, but can zoom directly to South America, enabling these products to reach markets like Peru and Chile in a shorter time. This significantly improves logistics efficiency between Hainan and South American countries, reducing overall transportation costs and helping the "Taste of Hainan" brand expand into a larger market in South America.

Now, thanks to the new route, imported products are getting better and better. South American specialty agricultural products, such as Peruvian avocados and Chilean cherries, are now being supplied directly to Hainan, leveraging the dual advantages of direct shipping and the free trade port policies, resulting in both lower logistics costs and fresher products. This not only helps the FTP improve local 'vegetable baskets' and 'fruit platters', but also meets the needs of Hainan residents for better consumer products and supply chain security after the start of special customs operations, ensuring that the benefits of the FTP directly improve the lives of the people of Hainan.

Shipping containers are stacked in orderly rows at Yangpu Port

(Photo provided by the reporter)

Even More Routes and Better Services on the Horizon

The maiden voyage on this new shipping route is not only another national strategy service milestone for COSCO Shipping, but also a new beginning for the Hainan FTP as infrastructure foundations are laid and service capabilities enhanced.

Now, thanks to the advantages of the deep-water shipping berths offered by the Yangpu Port, COSCO Shipping is steadily advancing a port expansion project, with the first phase of the expansion project’s terminal and 14 advanced quay cranes already in operation. Simultaneously, shipping networks are continuing to expand, enhancing the port's service capacity. After the completion of the next part of the expansion project, annual designed throughput capacity will approach 5 million TEUs—providing the "hardware foundation" for undertaking larger-scale transoceanic trade.

According to a Hainan Port and Shipping representative, COSCO Shipping plans to continue to deepen the integrated development of the system, combining shipping, the port, and logistics, increasing the frequency of global shipping routes, upgrading port services, and improving the level of full-chain services. This will deeply integrate Yangpu Port into the Belt and Road Initiative, strengthen the momentum of the Hainan FTP’s work to develop as a high ground for opening up and as a trade hub, and write a new chapter of high-quality development with "win-win results" on both sides of the Pacific Ocean.