By John Caicedo | 2025-03-07

LIMA -- Marcos, a small Peruvian businessman, once dreamed of achieving great economic success with the opening of the Chancay seaport, a megaproject built by the Chinese state company Cosco Shipping Ports.

However, Chancay -- once a quiet district on the Pacific coast, 80km north of Lima -- became a magnet not only for entrepreneurs like Marcos but also for criminals eager to exploit others through violence and intimidation.

"They (criminals) told us that if we didn't pay 30,000 soles (about $8,000), they would go after our families," said the metallurgical businessman in a report aired by Punto Final on the Latina channel in late February. His last name was omitted for security reasons.

The investigation exposed the extortion at the Chancay port.

"They threw dynamite at us. They threatened to kill us," Marcos added, admitting that at one point, "we didn't know who to turn to" for help.

For his safety, he is now forced to spend nights away from Chancay. When he visits the port, he and his colleagues endure an overwhelming sense of fear and uncertainty.

Potential turf war

In mid-February, police arrested one of Chancay's alleged gang leaders: Erick Pardo, also known as "Roro."

During the raid, authorities found explosive materials and items linked to extortion including stolen cell phones. While Roro denies any involvement, local media report that the evidence against him is overwhelming.

However, investigations revealed that Pardo -- despite his extensive criminal record -- is not the true leader of his organization. He operates under the orders of a more notorious figure: Paul Zarate, a well-known criminal with an even longer rap sheet.

Zarate has been charged with homicide, drug trafficking, aggravated robbery and illegal weapons possession. Sentenced in 2016 to 18 years in prison, he served just over a year before being inexplicably granted conditional release last July.

His current whereabouts remain unknown, but authorities believe he is now a major criminal operator in Chancay.

In an interview with Punto Final, police spokesmen said that Pardo's arrest and Zarate's identification are just the tip of the iceberg.

Many other high-risk criminals continue to operate in the area, leaving a long road ahead before entrepreneurs like Marcos can safely pursue their businesses.

Tensions intensify

The rise of criminal activity in Chancay is no surprise to security experts.

Beyond the port's economic potential, Peru as a whole is experiencing a surge in organized crime, marked by rampant extortion and violent attacks -- even murders -- against those who refuse to pay off criminals.

Across the country, small business owners and transport operators -- bus drivers, taxi drivers and motorcycle taxi riders -- are forced to pay daily protection fees to avoid violent reprisals.

Official data show that between 2022 and 2024, reported extortion cases increased by 50%, while assaults on businesses skyrocketed by 225%.

The Police Reporting Computer System recorded 2,509 murders last year -- 125% more than in 2020 -- though authorities acknowledge the real numbers may be even higher. Many of these killings were linked to extortion networks.

From the outset, concerns were raised that the Chancay port -- a $3.5 billion project managed by the Chinese company Cosco Shipping -- would attract criminal organizations.

Some original residents even opposed its construction for this very reason.

Former Interior Minister Carlos Basombrio argues that only sophisticated intelligence operations can effectively combat the criminal gangs at play.

His call reflects a broader national sentiment. According to an Ipsos survey, 55% of Peruvians consider crime and insecurity the government's most urgent problem.

Narco-trafficking operations

For now, extortion and violence are the port's most pressing security threats.

However, international experts have also raised concerns about China's track record in managing drug trafficking risks at its maritime terminals worldwide.

In early November, US Ambassador to Peru Stephanie Syptak-Ramnath and National Superintendent of Customs and Tax Administration (Sunat) Victor Mejia visited Chancay to address port security and the transnational threats that could emerge as operations ramp up.

Concerns are growing in Peru and across South America that Chancay could become a major drug-trafficking exit route.

On November 4, the US Embassy in Peru announced that, in collaboration with Sunat, it is implementing proactive measures to strengthen security at the port.

Washington has pledged technical assistance and donated three state-of-the-art cargo- and vehicle-inspection scanners worth over $8.5 million. According to the embassy, these scanners will help ensure that shipments passing through Chancay do not pose risks to Peru, its neighbors or the global trade network.