On the arid Peruvian coast, the fishing town of Chancay is undergoing a seismic transformation. Once a remote outpost where a third of the population lives without running water, Chancay is now the site of a colossal $1.3 billion megaport project, primarily financed by Chinese shipping giant Cosco.
This new deep-water port, poised to become a strategic transshipment hub for South America, was inaugurated on Thursday. Chinese President Xi Jinping attended the ceremony virtually from Lima, 60 kilometres away, alongside Peru’s President Dina Boluarte. Their participation, broadcast on a giant screen, was accompanied by a spectacle of Chinese dragon dancers and a symbolic lowering of aluminium containers onto a berthed cargo ship.
President Xi described the port as a harbinger of economic prosperity, claiming it would generate significant income and job opportunities for the region. “This project will deliver tangible benefits to the people,” he said, as world leaders gathered in Lima for the Asia-Pacific Economic Cooperation forum.
The port, which will eventually include 15 quays and an industrial park, is expected to attract over $3.5 billion in investment within the next decade. Officials have heralded it as a gateway connecting South America to Asia, promising to expedite exports such as Peruvian blueberries, Brazilian soybeans, and Chilean copper.
However, local residents remain sceptical. Fishermen, in particular, lament the loss of their livelihoods due to the dredging operations, which have disrupted fish breeding grounds. “Our fishing spots no longer exist here. They destroyed them,” said 78-year-old fisherman Julius Caesar, standing by the cranes. “I blame our government for failing to protect us.”
Rafael Ávila, a 28-year-old fisherman, echoed this sentiment. “I’ve been out all day, and I have to venture farther just to find fish,” he said, returning to shore exhausted and empty-handed. Ávila has resorted to offering joyrides to tourists for extra income, but he fears that the rising costs of upgrading his boat to fish farther afield may be beyond his means.
Residents are also concerned about potential environmental consequences. Memories are still fresh of the 2022 oil spill at the nearby La Pampilla refinery, which devastated Peru’s biodiverse waters and displaced thousands of fishermen. With some of the world’s largest container ships scheduled to dock at Chancay in 2025, locals worry about the risk of pollution and oil spills.
The fishing town’s economy has already suffered. Empty seafood restaurants and diminished tourism reflect a town struggling under the weight of reduced fishing stocks and altered ocean currents caused by the port’s construction. Even surfing, once a draw for visitors, has been affected by the changing tides brought on by the port’s breakwater.
Spray-painted slogans such as “No to the Megaport” adorn walls overlooking the waterfront, a stark reminder of local opposition. Rosa Collantes, a 40-year-old vendor cleaning drum fish by the shore, described the project as destructive. “This port is a monster that’s come here to screw us,” she said.
More Read
Despite these grievances, Cosco and Peruvian officials are trying to address the disparities. Mario de las Casas, a manager for Cosco in Chancay, acknowledged the stark contrast between the state-of-the-art port and the impoverished surrounding village. “You cannot build a modern port and leave a city next to it with no drinking water, no sewage, a collapsing hospital, and inadequate education,” he said, adding that Cosco is conducting studies to explore ways to foster local development and reduce inequality.
Critics argue that promises of economic growth have yet to materialise for Chancay’s 60,000 residents. While the Peruvian government envisions the port as a catalyst for special economic zones and lucrative tax breaks, locals see little evidence of these benefits trickling down to their community.
As construction progresses, Chancay finds itself at the crossroads of globalisation and local disenfranchisement. Whether the megaport will fulfil its promise of prosperity or deepen existing inequalities remains to be seen. For now, the contrast between the glittering cranes and the unpaved roads of Chancay is a poignant symbol of a community grappling with the costs of development.
