Chancay: The Chinese port that could change Peru’s economic outlook and challenge Chile

Photo: Chancay beach. By: Harold Armitage. Source: WikiCommons.

The construction of Chancay, China’s first port in Latin America, in Peru by the state-owned shipping company Cosco Shipping is a significant development designed to establish a major logistics hub in the region. With a substantial investment of over US$3 billion, the port is expected to be operational by the second half of 2024 and is anticipated to have a profound impact on the Peruvian economy.

While the construction of Chancay has generated enthusiasm in Peru, it has also raised concerns in Chile. Some view the new port as a potential threat to Chilean ports, particularly the port of San Antonio. There are concerns that Chancay could monopolize a significant portion of cargo traffic, potentially limiting Chilean foreign trade to a round-trip pattern centered around Chancay. Thus, questions have been raised regarding the need to improve Chile’s port infrastructure to compete with the expanding port capacity in the region.

Furthermore, the Chancay Port project has been regarded as part of China’s “checkbook diplomacy,” wherein investments and loans are utilized to secure influence in other countries. This aspect has sparked concern in the United States, which perceives Chinese investments as a potential threat and a means to establish excessive dependence on China. Chinese influence in Peru extends beyond the port sector and encompasses other industries such as mining, where Chinese state-owned companies have acquired control over significant copper deposits, including Las Bambas and Toromocho.

Top headline:

La tercera. (2023, Mayo 27). Chancay, El Puerto Que china construye en Perú y que amenaza a Chile.