Roberto de la Torre, president of the Lima Chamber of Commerce, recently analyzed the potential of the Chancay Megaport as a regional hub for international trade during an interview with RPP’s “Economía Para Todos.” He highlighted the need for the city to prepare for this anticipated growth, emphasizing the role of the Chamber and the importance of establishing a Special Economic Zone to maximize the benefits of increased trade activity.
The Chancay Megaport has the potential to significantly boost trade not just within Peru but across Latin America, particularly with key markets such as Brazil, Chile, and Colombia. De la Torre pointed out that the port’s strategic location allows it to serve as a key distribution center for goods arriving from these nations.
“This development could transform the city into a regional hub for goods, increasing international trade operations for Peru and Brazil, Chile, and Colombia,” commented De la Torre.
However, for the Chancay Megaport to fully capitalize on this opportunity, it must undertake significant preparatory measures, especially in the business sector. A major challenge is the current composition of businesses in the region, where most enterprises are micro or small businesses, many of which operate informally. Recognizing this, the Lima Chamber of Commerce has signed an agreement with the Municipality of Chancay to support these businesses, helping them build their capacities and providing training programs to professionalize their operations.
“It’s about assisting in the formalization process, developing capabilities, and ensuring businesses can manage their operations more effectively. Only 18.4% of Chancay’s economically active population has a university or technical education, while the rest lack such training,” explained De la Torre.
The Creation of a Special Economic Zone in Chancay
To ensure that the local population can fully benefit from the economic opportunities offered by the Chancay Megaport, a special economic zone (SEZ) is being established in Chancay. The proposal is currently awaiting a second vote in Congress, and if approved, it will bring significant advantages to the area.
The SEZ is expected to attract both foreign and domestic investment, which will, in turn, increase the demand for a skilled workforce. De la Torre underscored the collaborative efforts between the Lima Chamber of Commerce and the local municipality to guide this development effectively. A consultative council has been formed, comprising experienced professionals such as engineers Roque Benavides, Alfonso Bustamante, and Jorge del Castillo.
“This advisory council is meant to provide support, recommendations, and valuable insights on achieving sustainable urban development in Chancay. The coming growth presents significant challenges, including urban planning issues and security concerns,” De la Torre noted.
Key Development Priorities for Chancay
In addition to the establishment of the Special Economic Zone, the Lima Chamber of Commerce is focusing on four major areas to facilitate Chancay’s transformation into a trade hub:
- The Construction of an Avoidance Road: To streamline traffic flow and improve logistics, a bypass road is planned to divert heavy transport away from congested urban areas. This infrastructure will be critical in handling the increased volume of goods passing through the region.
- Development of the Special Economic Zone: Beyond attracting investment, the SEZ aims to create an environment where businesses can operate under favorable regulatory and tax conditions, boosting economic activity and job creation.
- Urban Planning and Infrastructure: With rapid growth, Chancay must address key urban planning challenges, including housing, transportation, and public services, to support an expanding workforce and business ecosystem.
- Improving Security Measures: Economic development often involves the challenge of maintaining public safety. A comprehensive security strategy is needed to prevent crime and ensure the city remains safe and attractive for investors and workers
De la Torre also emphasized the importance of efficient public sector action in facilitating these developments. He pointed out that leveraging Public-Private Partnerships (PPPs) and tax-incentivized infrastructure projects can significantly accelerate progress.
Investment and Economic Policy Considerations
Expectations regarding investments in Chancay are high. However, De la Torre warned that bureaucratic inefficiencies and slow administrative processes could hinder progress. He stressed the need for a more agile governmental response to capitalize on the Chancay Megaport project’s opportunities.
On the broader economic front, De la Torre expressed confidence in Economy Minister José Salardi, who has demonstrated strong performance in both the private sector and in attracting investments. He highlighted that the success of Salardi’s policies would ultimately translate into national economic gains.
“The success of Minister Salardi will be the success of the country,” De la Torre stated. He also underscored the urgency of addressing key issues such as fiscal deficit reduction and administrative simplification, which are critical to sustaining long-term economic growth.
Productivity and Retirement Fund Policies
In a separate discussion, De la Torre voiced his support for reducing the number of national holidays in Peru, arguing that the country cannot afford the loss in productivity that excessive holidays create. He suggested that optimizing the work calendar could improve overall economic efficiency.
Additionally, he weighed in on the controversial pension fund withdrawals from private administrators (AFP). While acknowledging many Peruvians’ financial difficulties, he cautioned against using pension funds as a short-term solution, emphasizing that these funds are meant to secure long-term economic stability for retirees.
Conclusion
The Chancay Megaport holds immense potential to become a major regional and international trade hub, benefiting not only Peru but neighboring economies like Brazil, Chile, and Colombia. However, several critical steps must be taken to realize this potential fully. These include improving business formalization, enhancing workforce skills, establishing a Special Economic Zone, and implementing key infrastructure and security measures.