Maritime Affairs Program (MAP) Handbill Spotlight

Concurrently in November, a new legal conflict over the Port of Chancay arose between COSCO and Ositran—Peru’s supervisory body for public use transport infrastructure investments— regarding the supervision and scope of regulatory authority over the port. COSCO filed a protective action with the Peruvian Judiciary stating that Ositran lacks the authority to enforce certain regulations at the Port of Chancay, while Ositran maintains that they are obligated to oversee the port infrastructure to ensure competitiveness, transparency, and accessibility. 

The Port of Chancay’s inauguration drew the attention of many with observers in media, academia and government around the world giving their opinions about the implications of the port. Presented debates on the port have covered a range of topics, including the implications of China’s presence in the region, the revival of the Maritime Silk Road, arguments on increased security concerns, the potentials of a strengthened bilateral China-Peru ties, and the array of benefits the new port brings to the global shipping industry, among other subjects.

Keep In Mind

The opening of the Port of Chancay arrived at a complex and sensitive period in history. Driven by a solid decade of tense security suspicions and pervasive caution worldwide, the port has drawn controversy and concern for years and it has all come to a head now that opening day has arrived. It is difficult to differentiate speculation from fact, especially when concerns are inflated by constant military conflicts ongoing in the background or questions are left only vaguely answered by the knowledgeable parties. The presence of two confusing lawsuits and the port’s connection to the Belt and Road Initiative—which has long ago become infamous in some circles—within the span of seven months do not soothe this tension.

Regardless of how it is discussed, the successful opening and operation of this port will lead to an evolution in China-Peru—as well as China-South American—relations. Even as China is in the midst of addressing a domestic economic downturn, as long as it is managed effectively, the Port of Chancay can be seen as a success for China’s long-term global economic stability. By most accounts, it is a tremendous boon to the global maritime economies of both China and South America that has the potential to bring many possibilities, especially should the remaining stages become complete. As COSCO CHANCAY’s vision statement—“To be recognized as the most important and efficient multipurpose port terminal in the South Pacific”—indicates, it wants to become the center of trade in the South Pacific, and it is in a position to succeed.

Public opinions on the port will likely remain divided, with some observers continuing to describe it as evidence of “a concerted Chinese strategy to extend its maritime trade and logistics footprint to all of the key maritime points on the globe.” For bulk speculation to cede in a timely manner, COSCO, along with the Peruvian government and other invested parties, will need to address the several issues that have come up during its construction—legal, environmental, geopolitical and social. Without—at the very least—open attempts to address and resolve these issues, the Port of Chancay is, more likely than not, destined to remain yet another point of contention and distrust between China and much of the rest of the world in the long-term; an outcome which favors no party.