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Nov. 7, 2024

Strategic Implication of the Chinese-Operated Port of Chancay

By Dr. Evan Ellis, PhD

This article examines the Port of Chancay from a strategic perspective, with a focus on how COSCO (China Ocean Shipping Company) achieved unprecedented control over the operation of the new Peruvian megaport, the impact that the port is likely to have on the global logistics system, and its strategic implications in time of war with the United States. It argues that the project is illustrative of how the PRC uses its economic leverage, coordination across its government and multiple commercial entities, and predatory practices in its contracting to secure commercial advantage, expanding market power and value added in a range of industries.  It also illustrates how the physical infrastructure, presence and human networks created through its growing commercial presence creates opportunities that the PRC military can exploit in time of a conflict with the West, even when the military value being the primary driver of the projects per se. 

Keywords: Port of Chancay, China, Perú, Latin America, Ports, Logistics, Strategic Competition 

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Background photo by @rjankovsky of Chancay Seaport, the future maritime hub of South America in Chancay Lima, Peru, sourced from Canva Pro