By Alicia Gutiérrez | 2023-11-16

LIMA -- A Chinese shipping giant's ongoing construction of a seaport is infuriating residents of a Peruvian town.

The residents of Chancay, situated approximately 80km north of Lima, mobilized once more in a peaceful protest on November 10.

They have united to oppose the privatization of natural resources and condemn the social and environmental abuses inflicted by Chinese state-owned Cosco Shipping Ports' effort to build a megaport.

Boasting an investment exceeding $3.6 billion, this project is slated to become the largest port in the South American Pacific, marking China's most significant venture of its kind in the region. The port's builders envision it having a 16-meter draft and the ability to accommodate ships carrying more than 18,000 containers each.

The inauguration of the megaport is set for the first half of 2024, coinciding with the anticipated visit of Chinese President Xi Jinping to Peru for the annual summit of the Asia-Pacific Economic Cooperation Forum (APEC).

The construction is spearheaded by Cosco Shipping Ports Chancay Perú SA, a joint venture with 60% ownership by Cosco Shipping Ports Ltd and 40% by the mining company Volcan, a subsidiary of the Swiss corporation Glencore.

Since 2016, the 63,000 residents of the coastal area north of Lima have witnessed explosions, excavations and the relentless movement of heavy machinery wreak structural damage to their homes.

Rattling a community

In early November, residents held a demonstration to insist on their right to drinking water, highlighting the Chinese construction company's monopolization of their water supply.

The protest represented the latest outcry from the community regarding this ongoing issue.

Authorities have turned a blind eye to their grievances, said Judith Apolinar, a community spokesperson.

"The agenda seems to favor privatizing water and handing it over to the Chinese… There's a well in Chancay meant for agriculture, but it's now being utilized for the city they are constructing, where the Chinese workers responsible for the project live," she said.

She recounted a troubling past where local artisanal fishermen were forcibly displaced from their livelihoods to make way for the construction of the shipping terminal in the area.

"The construction of this megaproject was authorized without the knowledge of a fishing village that actively opposed the project due to concerns about potential contamination of its bay," Apolinar said, pointing to an investigation conducted by the independent outlet Convoca.

She noted that the operation was clandestine, facilitated by one of Volcan's offshore companies, which was utilized "to acquire the land for a portion of this extensive project."

The project has drawn a variety of other concerns.

Residents have expressed grave concerns over the environmental impact associated with Chinese fishing and plans to utilize the new megaport for mineral exports to China.

"The establishment of Chinese port bases along the Peruvian coast signifies logistical support for the extensive Chinese fishing fleet, posing a threat to the sustainability of squid and various other species in the South American Pacific," Marcos Kisner Bueno, former secretary of the National Fisheries Development Fund (FONDEPES), told Entorno.

Meanwhile, the construction of the port has posed a significant risk to residents' lives, marked by multiple land subsidence incidents during the construction phase.

The most recent occurrence, in May, resulted in the destruction of several houses and severe damage to others as construction work for a tunnel was underway.

Non-compliance concerns

At the start of November, a coalition of members of Congress convened to scrutinize the plight of the Chancay port residents.

They urged the Chinese company to uphold the agreed-upon terms and compensation for locals affected during the megaport's construction.

Peruvian legislator Enrique Wong Pujada emphasized the need to ensure that the Chinese company adheres to all agreements and commitments made with both authorities and the local population throughout the duration of the port's construction.

Congress members Luis Aragón Carreño and Kelly Portalatino Ávalos expressed deep concern regarding the Chinese state company's failure to honor commitments made to the authorities and residents of Chancay.

They highlighted the pressing issues surrounding compensation and recognition of damages caused, emphasizing the need for swift resolution.