Cosco shipping ports making strides in the Peru terminal project

Cosco shipping ports has signed an agreement with the Chinese group CHEC SAC – CCCC4TH for the development and construction of a new multipurpose port in Chancay, Peru. The contract was awarded through a tender and the cost of the project is estimated to be about $600 million. The contract also includes docks, storage space, breakwaters as well as maintenance of operational areas.

The construction of the first pier is expected to be completed by the first half of 2023. Machinery is being mobilized and the preparations to begin constructions are in the final phase.

The port is located about 60 kilometers north of the financial and business capital Lima. It is designed to receive general cargo with the exclusion of bulk minerals and containerized goods. The construction of this port will create a direct route from Asia to Peru and the surrounding region. It is expected that the port will have a receiving capacity of 6 million tonnes of general cargo and about 1.5 million TEU’s per year.

The Ministry has stated that the construction of this port will considerably boost the economy and encourage exports. It will generate business opportunities and employment for over 9000 people, 90% of which will be taken up by local people.

Another salient feature of the port will be the connecting tunnel that will connect the port entrance and the port’s operational area. This tunnel will be about 1.8 km long and will be exclusively used for cargo traffic thus reducing congestion on public roads.

The deal for this terminal was signed in May 2019, followed by protests by the local public, stating that the emission of toxic pollutants, noise pollution, large-scale alteration of the coastline, and the destruction of flora and fauna of the area would irreparably damage the local ecosystem. In addition to this, the locals feared the displacement of their homes. The protest was followed by some changes in the plans presented by Cosco and Volcan, and despite the criticism, the project was approved in December 2020. Cosco representatives have claimed that they have the public’s support and that the project is in full compliance with necessary procedures. They further stated that they have obtained permits and licenses and are working in tandem with Peruvian ministries and agencies.