With nearly 3,000 kilometers of its territory bordering the Pacific Ocean and the strategic advantage of being the only South American nation whose capital touches the shore, Peru’s economy has historically been tied to its coastline, placing a high premium on the quality of its port infrastructure.
The country has more than 60 port facilities, but the port in the coastal city of Callao has historically stood out. Located in Greater Lima, it alone accounts for about 70 percent of Peru’s cargo.
Callao has played a key role in the massive expansion of Peru’s international trade since the turn of the century, when foreign trade soared from USD 7 billion in 2001 to more than USD 65 billion in 2022. Recently, USD 1.9 billion has been earmarked for the modernization of its facilities.
Despite all this, Callao’s days as the dominant port in the Pacific may be numbered. And the giant force behind this change could be the same one that has led Peru’s export boom over the past two decades: China.
The Asian giant is currently pushing for a new state-of-the-art port terminal in the city of Chancay, just 80 kilometers north of Lima. The project, led by China’s state-owned conglomerate Cosco Shipping Ports and Peruvian mining company Volcan, is expected to cost around USD 3.6 billion.
Originally conceived in 2011, the 800-hectare “mega-port” is set to be the first operated by...
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