Chancay Transformed by Chinese Investment
Chancay, a remote fishing town on the edge of Peru’s coastal desert, is witnessing rapid transformation as a $1.3 billion deep-water port, majority-owned by Chinese shipping giant Cosco, rises on its shores. The port is shifting Chancay from a modest fishing community to a critical trade hub expected to connect South America to Asia.
Chinese President Xi Jinping will inaugurate the Chancay megaport on Thursday during the Asia-Pacific Economic Cooperation forum in Peru, an event underscoring China’s increasing influence in South America’s resource-rich regions. The port is set to feature 15 quays and an industrial park, part of a vision to attract over $3.5 billion in investment over the next decade. Although Peruvian officials tout the project’s economic potential, local residents remain wary.
A Gateway for South American Exports
The Peruvian government envisions the port as a strategic export gateway for products like Peru’s blueberries, Brazil’s soybeans, and Chile’s copper, targeting faster trade routes to Asian markets. Officials estimate the port will generate substantial revenue and help establish “special economic zones” with tax incentives to stimulate the coastal economy, raising hopes for regional prosperity.
Local Fishermen Fear Loss of Livelihood
For many Chancay residents, however, the port represents both opportunity and hardship. Generations of fishermen say their fishing grounds have shrunk due to construction, leading to smaller catches. The dredging for the port has created a 17-meter channel that reportedly disrupts fish breeding, forcing fishermen like 28-year-old Rafael Ávila to travel farther to find fish.
“Now I need a larger, more expensive boat to reach the fish,” Ávila says, returning empty-handed. Like others, he has turned to tourism, offering boat rides to visitors eager to photograph the imposing Chinese vessels—a testament to residents’ resilience amid change.
Environmental Concerns Loom Over Project
Environmental fears persist. Memories of the 2022 oil spill at La Pampilla refinery, which damaged marine life and disrupted local fishing, still haunt residents. With large container ships expected to dock by January 2025, Chancay locals worry about potential pollution and oil spills affecting their waters.
Declining Local Economy
The local economy is already strained. Fishing stocks have diminished, and tourism has declined, leaving Chancay’s seafood restaurants and other businesses struggling. Surfers also report deteriorating wave conditions due to the port’s breakwater. Graffiti reading “No to the megaport” reflects the strong local resistance to a project seen as serving external interests over community needs.
Cosco Promises Community Investment
Mario de las Casas of Cosco acknowledges the disparity between the high-tech port and the surrounding infrastructure, where many Chancay residents live on unpaved roads without clean water or sewage systems. He emphasizes that Cosco has initiated studies aimed at addressing inequality and fostering local development, saying the port should be a source of local pride, not a “blemish” on the community.
Skepticism Remains Among Locals
Yet some residents remain unconvinced. “This port is a monster that’s come here to screw us,” says 40-year-old Rosa Collantes, cleaning fish on the shore. “People see the massive port and think ‘Wow,’ but they don’t see the reality.”
As the Chancay megaport project advances, the balance between economic growth and preserving local livelihoods is delicate, raising pressing questions about the cost of progress and the future of this once-quiet fishing town.