The Port of Chancay has been undergoing a modernization process since 2019, following decades of limitations in its infrastructure that have hindered its ability to handle a wider variety and larger volume of cargo. This renewal project, strategically located on the central coast of Peru just 80 kilometers north of Lima, in the Huaral region, has become a focal point for the country's economic development. Additionally, its proximity to the Central Interoceanic Corridor positions it as a key logistics route for the transportation of goods nationally and internationally.
The modernization of the Port of Chancay aims not only to address existing infrastructure deficiencies but also to maximize its potential to boost Peru's competitiveness, improve its logistics efficiency, strengthen connectivity, and attract investments.
Modernization Project of the Port of Chancay
Initiated in 2019 with an initial investment of USD$1.3 billion and projected to exceed US$3.6 billion in the long term, the modernization works of the Port of Chancay are led by the Chinese company Cosco Shipping with a 60% stake, and the Peruvian company Volcan Compañía with the remaining 40%.
This megaport, designed to become a regional hub, has an initial planned capacity to handle 1 million TEUs annually in its first phase, along with 6 million tons of general and bulk cargo, and the ability to accommodate vessels of up to 18,000 containers. These numbers not only demonstrate the growth potential for various industries in Peru but also promise a significant economic impact, including the estimated creation of around 7,500 direct and indirect jobs during the different stages of the project.
Furthermore, by becoming a direct gateway to Asia, the Port of Chancay is poised to position itself as one of the most important port hubs on the Pacific coast. This strategy will not only attract a substantial portion of the trade from neighboring countries such as Chile, Ecuador, Colombia, and Brazil but also alleviate congestion at the Port of Callao, currently saturated as the country's main port.
It is worth noting that while the project has been entirely financed by the private sector, both the Chinese and Peruvian governments have played a crucial role in the execution of the port's construction and modernization works.
The modernized port is expected to begin operations in the last quarter of 2024, coinciding with the planned inauguration during the Asia-Pacific Economic Cooperation (APEC) Summit in Peru, scheduled from November 10 to 16, with the participation of Chinese President Xi Jinping.
Main Challenges of the Project
Like any project of this magnitude, the Port of Chancay faces a series of challenges that must be addressed to maximize its potential:
• Technical challenges in port infrastructure renewal;
• Lack of adequate land transport infrastructure in the country, including roads and railways;
• Obtaining sufficient investments to finance the project; Commitment to sustainability and environmental protection; Investment in advanced technologies to improve operational capacity and reduce environmental impacts;
• Effective involvement of the Peruvian government in policies and regulations that support the project, as well as the establishment of fiscal incentives for private investment in port infrastructure;
• Business development and strategic alliances with other actors in the logistics chain.
In conclusion, the modernization of the Port of Chancay represents an ambitious project that promises to drive economic development in Peru. By becoming a major regional hub and a gateway to Asia, the port is destined to play a crucial role in international trade, although to reach its full potential, it is necessary to overcome existing challenges and ensure continuous commitment from both the private sector and the Peruvian government.
