Transportation Analysis Of The Exports Of Iron Ore From Peru To China

Peru possesses an innumerable amount of mineral resources and it is considered one of the 12 biggest mining countries in the world. China and Peru have been involved in a prosper relation regarding the cooperation in economy, foreign affairs and energy. Currently, China and Peru have already established a strategic partnership resulting in an exponential increase of the flow in the imports and exports by 75 times. After the signing of the Free Trade Agreement in 2009, China has become one of the most significant trading partners in the Peruvian exporting scope.Iron ore plays a huge role in the trading between China and Peru. In 2014, Iron ore trading reached an average of 10 million tons placing Peru as the 9th exporting country to the Chinese market; this is a prosperous omen in the development of iron trading between these two nations. However, there are some issues to be resolved regarding the Peruvian logistic infrastructure to fully cover the needs of national and international delivery of goods limiting the flow of trading between China and Peru. For this reason, predicting the amount of iron trading and analyzing the capacity of the current state of the logistics are of great importance, as well as pointing and promoting countermeasures for the improvement of such as logistics.The purpose of this paper is firstly to analyze the background of the export of iron ore from Peru to China leading to a research of the area. Moreover, this study will focus on the current state of the exporting and trading of iron ore from Peru to China using a basic model of Trend Exploration to analyze a prediction of these exports for the next five years; contrasting the future development of exporting of iron ore from Peru to China and the state of the logistics in Peru at a national and international level. Furthermore, this study will analyze the influence of the most important factors in the transportation of ores and its logistics capabilities. Finally, this paper will focus on the transportation level for iron ore of these two countries offering countermeasures and suggestion to further improvement.