#1 Chancay Port Transformation and Its Impact on Local Communities

Chancay Port, a remote fishing town on Peru’s coast, is undergoing a major transformation with the development of a $1.3 billion deep-water port. Majority-owned by Chinese shipping giant Cosco, the megaport is set to become a key player in global trade, driven by China’s growing interest in South America’s resources. However, this ambitious development has sparked significant concerns among local residents, especially fishermen, about its impact on their livelihoods.

Key Highlights

1. Chancay Port Development:

The Chancay Port project, a $1.3 billion investment, is designed to turn the once quiet fishing town into a key transshipment hub between South America and Asia.
Chinese President Xi Jinping and Peruvian President Dina Boluarte jointly inaugurated the port, with the facility expected to generate significant economic benefits through expanded trade routes.
The project is poised to attract an additional $3.5 billion in investment over the next decade, with plans to develop 15 quays and an industrial park to support global trade.

2. Economic Expectations and Strategic Importance:

The Peruvian government envisions the port as a strategic asset, boosting exports such as blueberries, soybeans, and copper.
Officials highlight the potential for millions of dollars in revenues and the creation of special economic zones offering tax breaks to stimulate investment and economic growth in the region.

3. Local Concerns and Opposition:

While the port is seen as an economic boon by the government, many of Chancay’s 60,000 residents are skeptical of the promised benefits, especially fishermen who feel their livelihoods are threatened.
Dredging to create a shipping channel has destroyed fish breeding grounds, forcing fishermen to travel farther out to sea and invest in more expensive equipment.
Locals also fear environmental impacts such as pollution and oil spills, pointing to past disasters like the 2022 oil spill at La Pampilla refinery that devastated local marine life.

4. Social and Infrastructure Disparities:

The stark contrast between the modern port and the underdeveloped town of Chancay has raised concerns about the inequality exacerbated by the project.
Despite the port’s advanced infrastructure, many residents lack access to basic services such as clean water, sewage, and adequate healthcare.
Cosco, the company behind the port, acknowledges these disparities and has pledged to study ways in which the port can contribute to reducing local inequality and improving living conditions for the residents.

5. Fishermen’s Struggles:

Fishermen like Rafael Ávila complain about diminishing catches and the need for larger, more costly boats to access fish.
The local fishing community feels marginalized, with many believing that the port’s development is primarily benefitting external interests, particularly Chinese companies, while offering minimal economic returns to the town’s residents.

6. Tourism and Environmental Concerns:

Local tourism, including surfing, has also been negatively impacted by the port’s construction.
The breakwater has disrupted water currents, altering surfing conditions and diminishing the attractiveness of Chancay’s coastline to tourists.
Local businesses, including restaurants and ice vendors, are suffering from decreased tourism and reduced fish stocks.
Residents have expressed their opposition through graffiti, with slogans like “No to the megaport” appearing on walls overlooking the waterfront.