Chancay Port, developed in partnership with China, is a strategic project that was inaugurated in November 2024 with the presence of Xi Jinping, the President of China, and Dina Boluarte, the President of Peru. This port, managed by COSCO Shipping Ports, has a capacity of handling one million containers, six million tons of cargo, and 160,000 vehicles, and is connected to the main highway by a one-mile tunnel.
Economic and Trade Impacts of Chancay Port
Chancay Port allows Peru to shorten its trade routes to Asia, and reports indicate that Brazil is also considering using this port for exporting its agricultural products. Negotiations are underway between Brazilian and Chinese officials to construct a railway line to connect Chancay to Brazil. If this project materializes, Chancay could become a key point for trade in South America.
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Political Challenges and Concerns
Despite the economic benefits, COSCO's control over Chancay Port has raised concerns regarding Peru's security and economic independence. A CSIS report in 2025 indicated that 37 port projects across Latin America are linked to Chinese companies, and the risk level of these projects varies depending on ownership and local controls. Recently, Peru and COSCO have gone to court over exclusive rights to operate the port and pricing, and in July 2026, the Peruvian court restored regulatory licenses to the country's transport oversight agency, Ositrán.
This situation reflects a dilemma between corporate rights and the sovereign rights of countries. Signing long-term contracts carries significant risks and may place countries in a state of dependency on a foreign company. Additionally, digital technologies are increasingly expanding in ports, necessitating attention to cybersecurity and the protection of commercial information.
At the same time, countries like Peru cannot afford to forgo foreign investments, as these investments are a crucial source for developing their infrastructure.
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