CHANCAY, Peru — Nestled in Peru’s coastal desert, a secluded fishing town is undergoing a significant transformation into an expansive deep-water port, driven by rising Chinese investments in resource-rich South America.
The Chancay megaport, a $1.3 billion venture largely overseen by the Chinese shipping behemoth Cosco, is anticipated to reshape this modest community of fishing boats into a pivotal element of the global trade network. President Xi Jinping of China will officially inaugurate the port during the Asia-Pacific Economic Cooperation forum in Peru on Thursday.
The ambitious project plans to establish 15 docking areas and an extensive industrial park, aiming to attract more than $3.5 billion in investments over the forthcoming decade. However, it has garnered skepticism from local villagers, many of whom claim it affects their fishing activities and fails to provide economic advantages to the community.
“Our fishing grounds have vanished,” expressed 78-year-old fisherman Julius Caesar, drawing a parallel to his namesake. He gestured at the towering cranes and continued, “I don’t fault the Chinese for seeking profit; I hold our government accountable for its lack of protection.”
The Peruvian administration envisions the port, located roughly 60 kilometers (37 miles) north of Lima, as a key transshipment hub for the area, with the potential to link South America to Asia and enhance trade with the Pacific. They highlight prospects for generating significant revenue and transforming coastal municipalities into special economic zones with favorable tax conditions to attract investments.
“Our focus is on the well-being of Peruvians first and foremost,” Foreign Minister Elmer Schialer remarked.
Yet, many of Chancay’s 60,000 residents remain doubtful. Fishermen lament their diminishing catches and claim they have already faced financial loss.
Locals assert that dredging activities, which removed sediment to create a 17-meter (56 feet) deep shipping channel, have damaged crucial fish breeding areas.
“I spent the whole day fishing and still returned empty-handed,” said 28-year-old fisherman Rafael Ávila, visibly fatigued and covered in sand. “This was once adequate,” he pointed to his small boat. “Now, I need to invest in a larger, costlier vessel to catch fish.”
To supplement his income, Ávila has begun offering occasional rides to tourists eager to snap pictures of the imposing Chinese vessels.
With the largest container ships expected to dock at Chancay Port starting January 2025, residents are concerned about potential environmental pollution and oil spills. A mishap at the nearby La Pampilla refinery in 2022 previously led to a significant oil spill, which had dire effects on the region’s rich marine biodiversity, jeopardizing the livelihoods of many fishermen.
The town center, marked by a predominance of empty seafood eateries, reflects the impacts of diminishing fish populations and depleted tourism activity, even before the port has become operational.
Changes to coastal currents caused by the port’s breakwater have adversely affected surfing conditions, disrupting various local enterprises, from ice vendors to truck drivers to restaurant owners. The phrase “No to the megaport” has been spray-painted on a wall facing the harbor.
“This port is a colossal threat to our community,” stated 40-year-old Rosa Collantes, who was busy preparing fish on the shore. “Outsiders see the port and think it’s magnificent, but they fail to grasp the reality we are living.”
Port officials acknowledge the stark contrast between the advanced port infrastructure and the adjacent village of Chancay, where many residents endure poor living conditions on unpaved roads surrounded by dilapidated structures and litter.
“It’s impossible to create a state-of-the-art port next to a community lacking essential services, such as clean drinking water, waste disposal, and functioning hospitals and schools,” said Mario de las Casas, a manager for Cosco in Chancay. He added that the company is conducting studies to assess how the port could bolster local development and mitigate inequality.
“The port ought not to stand as a problem for the community,” de las Casas concluded.
