Chancay port challenges Chile’s position in regional trade

As Peru prepares to open the Chinese-funded Chancay port, Chile faces pressure to modernize its own port system to stay regionally competitive. Chancay is expected to handle up to 1.5 million containers per year in its first phase, challenging Chile’s role as a key export hub in South America.

In 2024, Chile’s San Antonio port moved 1.8 million containers, while Valparaíso handled nearly one million. Future plans include the Outer Port of San Antonio, which could raise capacity to 6 million containers per year.

However, capacity is not the only issue. Governance, legal frameworks, and logistics also matter. Chile’s mixed port model, created under Law 19.542, separates public and private operations and has boosted investment and productivity. Still, most port concessions — except for Terminal 1 in Valparaíso — have not started the renewal process, which can take up to seven years.

Another challenge is poor road and rail links to major terminals like San Antonio and San Vicente, limiting efficiency. State investments are needed but are often restricted by current concession rules.

To stay competitive, Chile must act quickly: relaunch concession bids, upgrade logistics infrastructure, and adopt international accounting standards to avoid legal issues. Coordinated action across government ministries and the private sector will be key to strengthening Chile’s position in the regional port network.

source: blueberriesconsulting.com

photo: news.cgtn.com