Modernization of the Chancay Port: Economic Boost and Global Connectivity

In November 2024, the official inauguration of the Chancay megaport took place during the Asia-Pacific Economic Cooperation (APEC) Forum, with the virtual participation of Chinese President Xi Jinping and Peruvian President Dina Boluarte.

Located 80 kilometers north of Lima, the Chancay Port has consolidated itself as a key logistics hub in Peru, facilitating maritime imports in Peru and international trade. Thanks to its modernization, it has become a strategic point for commercial operations between South America and Asia, optimizing maritime freight to Peru and strengthening the country’s global connectivity.

Features of the Chancay Port Modernization

The Chancay Port modernization project, led by the Chinese company Cosco Shipping and the Peruvian company Volcan Compañía, required an investment of over US$3.6 billion. Its infrastructure is designed to handle:

• 1 million TEUs (twenty-foot equivalent units) annually.

• 6 million tons of general and bulk cargo.

• Ships of up to 18,000 containers, facilitating operations with large-draft vessels.

• 141 hectares of land, with 80 hectares dedicated exclusively to port operations.

  
  

Economic and Commercial Impact of Chancay Port

The modernization of the Chancay Port not only strengthens Peru’s port infrastructure but also boosts the country’s economy by generating around 7,500 direct and indirect jobs. Additionally, this development enhances logistics in Peru, facilitating maritime imports and optimizing maritime freight. The port is expected to:

• Reduce logistical costs and shipping times for Peruvian exports.

• Decongest the Port of Callao, the country’s main maritime terminal.

• Promote trade with key markets such as China, Chile, Ecuador, Colombia, and Brazil, strengthening Peru’s position in international trade.

  
  

Challenges and Issues of the Chancay Port

Despite its great potential, the Chancay Port faces several challenges that must be addressed to ensure its success and strengthen logistics in Peru:

• Land transport infrastructure: Modernizing roads and railways is essential to improving the port’s connectivity with the rest of the country, facilitating maritime imports to Peru and optimizing maritime freight to Peru.

• Investment in technology and sustainability: Implementing efficient and eco-friendly systems is key to minimizing environmental impact and improving the port’s competitiveness.

• Government regulations: It is crucial for the Peruvian government to continue providing tax incentives and regulations that favor private investment in port infrastructure, ensuring sustainable growth in trade and imports in Peru.

  
  

Conclusion

The Chancay Port is positioned as a strategic pillar in logistics in Peru and international trade, strengthening the country’s position in global commerce. Its modernization not only stimulates the local economy but also drives maritime imports to Peru and sets a model for modern and efficient port development in South America.

However, its success will depend on overcoming logistical and regulatory challenges to establish itself as a top-tier commercial hub, optimizing maritime freight in Peru and facilitating the growth of the port sector.