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The Chancay Port Terminal Project, a multibillion-dollar Chinese-backed initiative, is set to revolutionize South American trade, urban planning, and infrastructure, positioning Peru as a central logistics hub between Asia and Latin America

Port2Port | by
Jasson Agustín Fernández Díaz
Jasson Agustín Fernández Díaz
CHANCAY MEGAPORT CHINA PERU GEOTRENDS.EU
The Chancay Multipurpose Port Terminal, located 80 kilometers north of Lima, is set to accommodate the world’s largest cargo vessels, transforming regional logistics
Home » Chancay Megaport: China and Peru’s strategic gateway to global trade

Chancay Megaport: China and Peru’s strategic gateway to global trade

The construction of the so-called “Chancay Megaport” has become a focal topic not only on the Peruvian agenda but also for Latin America and the world. This project is expected to transform geopolitics and geo-economics on a global scale.

However, discussions have primarily focused on its economic relevance for Peru’s logistics and industrial sectors, overlooking other key elements in the debate around the port and its relationship with surrounding territories.

Therefore, through a press analysis conducted between 2007 and 2024, this work aims to provide a narrative on the project across various levels. It will address not only the economic and political implications but also the tensions that have emerged throughout its development and the interests that have aligned to ensure its viability.

The “Chancay Port Terminal” Project: Economic and political implications for Peru

The Chancay Multipurpose Port Terminal, under construction 80 kilometers north of Lima, has been classified as a megaproject due to its ability to receive the world’s largest cargo vessels, which can carry over 18,000 containers. The Chinese state-owned company COSCO Shipping Ports is leading the construction, and the port will serve multiple purposes, handling containerized cargo, general cargo, non-mineral bulk, liquid cargo, and roll-on/roll-off cargo. The project comprises three main components:

1. Operational Zone: This area hosts port activities proper, including docks, breakwaters, maritime entry channels, storage areas for containers, bulk, and roll-on/roll-off cargo, as well as maintenance and workshop areas. The Operational Zone is located in the northwest section of the project area and includes the Punta Chancay massif, the surrounding maritime area, the bay extending eastward, and the maritime area stretching south of Punta Chancay.

2. Entry Complex: This includes the vehicular foreport, entrance gates to the terminal, customs inspection areas, administrative offices, and logistical and support service areas. It is situated approximately 2 kilometers east of the Operational Zone.

3. Underground Viaduct Tunnel: Connecting the Entry Complex to the Operational Zone, this 1.8-kilometer tunnel provides an exclusive, segregated route for cargo traffic related to port operations. It features three vehicle lanes, two conveyor belts for solid bulk, and multiproduct pipelines for liquid bulk.

The project is being executed in stages. The first stage is being developed over an area of 141 hectares and includes constructing a highway interchange providing access from the Pan-American highway to the vehicular foreport, the connecting tunnel to the Operational Port Area, and the Entry Complex. Additionally, the Operational Zone will feature the construction of approach and maneuvering channels for ships, a protective breakwater south of Punta Chancay, and the first four berths, specified as follows:

Berths 1 and 2 form part of the Bulk, General, and Roll-On/Roll-Off (Ro/Ro) Terminal. Berth 1 is a multipurpose dock primarily designated to meet the demand for solid and liquid bulk cargo and roll-on/roll-off cargo. Berth 2 will primarily serve vessels carrying general and loose cargo that is not containerized and can also accommodate Ro/Ro vessels for rolling cargo. Both berths will be equipped with loading and unloading equipment, as well as storage platforms for general and roll-on/roll-off cargo.

Berths 3 and 4 form part of the Container Terminal and are specialized docks for container vessels. They will be outfitted with advanced, high-tech equipment for loading, unloading, and container transfer, as well as storage yards, administrative areas, service areas, and workshops to ensure the Terminal’s efficient operation.

Additionally, through its subsidiary Roquel Global S.A.C., Volcan plans to develop the Chancay Logistics and Industrial Complex on an 840-hectare area, 100% owned by the company. This area is adjacent to the Chancay Port Entry Complex and will benefit from the new trade routes the port will develop as a key maritime hub for the South Pacific.

Current status 

Construction of the first stage of the terminal began in 2021, with works led by the consortium China Harbor Engineering Company SAC / China Communications Construction Company Fourth Harbor Engineering Co. Ltd, and China Railway N° 10 Engineering Group Co. Ltd. Peru Branch.

As of August 2024, the project is 91% complete and is scheduled to be inaugurated in November of this year. The inauguration will coincide with the Asia-Pacific Economic Cooperation (APEC) Peru 2024 Forum, featuring the attendance of Chinese President Xi Jinping, underscoring the international importance of this megaport. A testing phase will follow, running through December and January, with the port expected to become operational by late January or early February 2025.

The Chancay port project envisions a total of 15 berths. Three cranes have been installed on Berth 2, six on Berths 3 and 4, and, as of August, three cranes are being installed on Berth 1. The remaining cranes and equipment, including unmanned trucks, are expected to be ready by September.

The first stage will enable four berths: two for bulk or oversized cargo and two for containers. Mario de las Casas, Institutional Relations Manager at Cosco Shipping Ports, stated that “the remaining berths will be developed based on market demand. If demand for the four terminals grows, expansions will occur, though this will be somewhat further down the line.”

Furthermore, the port’s equipment will feature cutting-edge technology, as it will be entirely electric with no combustion usage, aimed at achieving optimal efficiency. Container operations will be 100% automated. Given that the port expects to receive the world’s largest vessels, the oversized cargo handling area will have operators and will not be fully automated.

Economic and political significance

With a projected investment of $3.6 billion according to official estimates, this project represents a complex engineering feat already underway, with $1.315 billion allocated for its first phase. Estimates indicate that the Port of Chancay is set to become a key maritime hub for trade between South America and Asia, particularly with China (Port of Shanghai). The Peruvian government expects to capture around 50% of the approximately $580 billion in annual trade flow between China and South America.

The port is anticipated to establish itself as a “Regional Port Hub,” becoming a preferred gateway for exporting raw materials from the region to China, such as copper and other minerals that Peru produces in abundance. Due to its size and volume of operations, the Port of Chancay is projected to become a central node in international trade, redistributing cargo across Peru, Chile, Ecuador, Colombia, and Brazil.

With the development of Chancay, a new maritime route will open, potentially reducing transit times to Asia by up to 12 days. The idea of constructing a complementary port to alleviate congestion at the Port of Callao, Peru’s main entry point for goods, had been under consideration for some time. It is expected that both ports will jointly form this “Regional Port Hub.”

President of Peru Dina Boluarte oversaw the progress of work at the Chancay Megaport, June 14, 2024

Couplings of sectoral projects around the “Chancay Port Terminal” Project

Urban sector projects: The Ministry of Housing, Construction, and Sanitation (MVCS) is preparing a comprehensive land use plan for the areas surrounding Chancay Port. This was indicated by former minister Hania Pérez de Cuellar during her participation in the “Forum on the Chancay – Callao Port Hub for Strengthening the Naval Industry in Peru.” The MVCS aims to manage and obtain the necessary funding for the execution of large urban infrastructure projects and housing complexes, among others.

In this context, on January 9, 2024, the MVCS signed agreements with three municipalities—Huaral, Aucallama, and Chancay—for the development of their urban plans, and announced the creation of the Chancay-Ancón-Callao Special Project, which would be launched in February, following coordination with the Ministry of Economy and Finance (MEF). It is also referred to as the “Chancón Special Project” and has three main pillars: urban development plans, water and sanitation projects to close gaps, and addressing future industrial and population demands, along with the creation of housing.

The Ministry of Housing began the preparation of three territorial and urban planning instruments for the districts comprising the multipurpose Chancay Port Terminal mega-project: The Territorial Conditioning Plan (PAT) for Huaral, the Urban Development Plan (PDU) for Chancay, and the Urban Development Plan (PDU) for Huaral-Aucallama. The aim is to propose a comprehensive vision for growth by 2044 for each jurisdiction.

The MVCS initiated the preparation of these documents to support the provincial municipality of Huaral and the district municipalities of Chancay and Aucallama, with the objective of assisting local governments in planning and achieving the orderly occupation of urban land, given the significant economic and social impact that the implementation of the port terminal will entail.

The final proposal for the PDUs and the respective PAT, executed by the General Directorate of Policies and Regulations in Housing and Urbanism of the MVCS, must be evaluated and subsequently approved and published by the municipal authority. Additionally, the Ministry of Housing transferred $290,000 (S/1,065,000) for this purpose to the Metropolitan Municipality of Lima (MML), specifically to the Metropolitan Planning Institute (IMP) to develop the Urban Development Plan (PDU) for Northern Lima.

Currently, the Provincial Municipality of Huaral has made available the Chancay Urban Development Plan (PDU) for 2024-2034 to receive contributions, observations, and recommendations from social actors in the Chancay district and the general public. The document has been submitted for public consultation, allowing citizens to access the contents of the PDU Chancay, including the Diagnosis, General and Specific Proposals, and the Investment Program, from October 10 to November 8, 2024.

Transportation sector projects: The current Minister of Transportation and Communications (MTC), Raúl Pérez Reyes, has announced the intention to promote the development of the Callao–Chancay logistical axis and improve connectivity to various regions of the country. To this end, several road and logistics infrastructure projects are being initiated to significantly enhance the infrastructure of the Northern Pan-American Highway.

Among the notable projects, he mentioned an overpass on the Northern Pan-American Highway at kilometer 79, which will improve road safety and benefit both residents and workers in Chancay. This project, which began in February, has a completion timeline of eight months. Another significant project is the Chancay–Chancayllo Bypass, which is approximately 15 kilometers long. This road will divert heavy traffic away from urban areas, reducing accidents and improving vehicle flow. The project includes three interchanges and nine overpasses, with the project profile expected to be completed by the third quarter of 2024.

Additionally, work is underway on the dual carriageway from Serpentín Pasamayo to the Pasamayo Variant to enhance the movement of heavy vehicles and road safety between kilometers 0 and 22 of the Northern Pan-American Highway. A third lane will be added to the variant from kilometers 44 to 75, with the reinforced project profile slated for completion in the third quarter of this year.

Improvements are also planned for Néstor Gambetta Avenue in Callao, which is part of the National Plan for Logistics Transportation Services and Infrastructure through 2032, alongside the Callao foreport and the Lima-Barranca railway. The MTC is promoting the Lima-Barranca railway, a project that recently received approval for the Pre-Investment Study at the profile level. This mixed-traffic train, covering more than 240 kilometers, will facilitate the mass transportation of cargo and passengers, thereby reducing accidents, traffic congestion, and harmful emissions.

Furthermore, interventions are planned for the Ambo–Oyón–Huaura, Huayllay–Acos-Huaral, and Huayllay–Canta-Lima–Chancay road corridors, with construction estimated to begin in the fourth quarter of 2024. These projects will enhance connectivity and complement the initiatives surrounding Chancay Port.

Social inclusion sector projects: In May 2024, the Ministry of Development and Social Inclusion (MIDIS) established a temporary Multisectoral Commission through Supreme Decree No. 004-2024-MIDIS. The purpose of this commission is to propose actions and measures aimed at promoting development and social inclusion with a territorial focus in the area influenced by the Multipurpose Port Terminal Project of Chancay (TPMCH).

The multisectoral commission is composed of representatives from 13 ministries, the Vice-Ministry of Territorial Governance, the Regional Government of Lima, the provincial governments of Barranca, Huaral, and Huaura, as well as the district governments of Chancay and Aucallama. These entities are responsible for developing an urban development plan, a territorial planning plan, and a land-use management plan.


The first part of Jasson Agustín Fernández Díaz’s article on the environmental and social impacts of the Chancay Megaport project is also published on geo-trends.eu. The full research on the Chancay Megaport is available in Spanish on the website www.contestedports.com.