Peru has cleared the main obstacle to a new Marcona port on its southern coast, resolving a standoff between two Chinese companies that threatened jobs and infrastructure investment in one of the country's poorest regions. A land deal signed Thursday between ProInversión, Peru's investment promotion agency, and Shougang Hierro Perú allows a US$404.8 million terminal run by China's Jinzhao to move forward after a five-month suspension.
The concession contract with San Juan Port S.A., part of the Jinzhao group, was signed on 31 March. It was suspended on 16 April because the project area couldn't be handed over. Part of that land lay inside Shougang's mining concessions. Shougang has mined iron at Marcona since 1992, when it bought the state company Hierro Perú, and ships its ore through its own port at San Nicolás.
Physical Blockade Delayed Investment
The standoff wasn't just legal. It was physical. During the handover on 16 April, Shougang staff blocked access to the site, the business weekly SEMANAeconómica reported. ProInversión and the transport ministry argued the land had belonged to the state since 1948, before the Marcona mining concessions. Shougang said its surface rights from those concessions overlapped the port area.
Under the new agreement, Shougang commits "expressly and bindingly" not to exercise or assert those rights within the port area. The transport ministry keeps title to the land. The deal allows the suspension to be lifted, the site to be delivered and engineering work to begin. A longer delay could have triggered a clause allowing the contract to be terminated, SEMANAeconómica warned in July.
What Workers and Communities Stand to Gain
The government has promised 1,500 direct and indirect jobs in the first five years. Transport Minister José Tangherlini said the terminal will serve 29 provinces and 280 districts in Ica, Ayacucho, Arequipa, Apurímac and Cusco. It'll offer a new logistics option for the south's productive activities and mining projects, he added. The project also includes a social fund equal to 3% of gross revenue. It will pay for social activities in Marcona district and Nazca province, EFE reported.
ProInversión estimates the 3% fund will raise more than 290 million soles, about US$85 million, over 25 years. Luis Del Carpio, who heads ProInversión, said the deal "opens the way" for the investment to become "infrastructure, jobs and new opportunities for families in the south."
The concession runs for 30 years. It covers the design, financing, construction, operation, maintenance and eventual transfer of a multipurpose terminal. The full project includes two docks, three berths and equipment for bulk, general and container cargo, EFE reported. The first stage covers a pier with two berths, an access bridge, storage and loading systems, according to Gestión.
Construction Timeline and Regional Impact
Estimates for that first stage differ. Gestión put it at more than US$271 million. Reuters quoted Tangherlini as saying US$200 million, while Canal N quoted him citing US$127 million. Construction should begin next year and take roughly two years for the first stage, Tangherlini said. The terminal is expected to become Peru's third-largest port, Reuters reported.
Jinzhao has already filed a third technical report with Senace, the environmental certification agency, Gestión reported in May. It proposes design changes worth about US$6 million. These include two conveyor belts able to move 3,050 tonnes an hour. The port will mainly ship iron and copper concentrates from the planned Pampa de Pongo mine, Gestión reported. It'll also handle general cargo, containers and supplies for mining projects. Pampa de Pongo is Jinzhao's iron project in southern Peru, with a planned investment of US$1.781 billion.
Questions About Local Benefits
Not everyone is convinced. When the contract was signed, La República questioned how much the port would do for the region beyond mineral exports. The newspaper said such funds often lack clear guarantees on how the money is spent. It also noted that the contract was ProInversión's first as the granting authority, a new role for the agency.
Reuters said Jinzhao would be the second Chinese company to build and run a port in Peru, after Cosco Shipping Ports. Cosco has operated the Chancay megaport north of Lima since late 2024. Shougang's San Nicolás dock is a private terminal for its own ore rather than a public port concession. Peru is one of the world's biggest copper producers, Reuters noted. The ministry calls the project a matter of public necessity and utility.
Why This Matters:
For southern regions such as Apurímac and Cusco, the terminal promises a new route to the sea for mineral and other cargo in areas where infrastructure gaps have long limited economic opportunity. Whether the promised jobs materialize and whether the social fund delivers transparent, accountable investment in local communities will determine if this becomes genuine development or just another extractive corridor. The contract's 3% revenue share and job commitments are mechanisms meant to ensure public benefit from private infrastructure, but La República's concerns about oversight and spending guarantees highlight the enforcement challenge. This is ProInversión's first project as granting authority, making accountability structures untested. The five-month suspension showed how corporate disputes can freeze investments that affect workers and families far from boardrooms. The resolution clears the way for construction targeted for next year, but the real test is whether regulatory frameworks ensure the port serves regional development, not just mineral exports.
Why This Matters:
For southern regions such as Apurímac and Cusco, the terminal promises a new route to the sea for mineral and other cargo in areas where infrastructure gaps have long limited economic opportunity. Whether the promised jobs materialize and whether the social fund delivers transparent, accountable investment in local communities will determine if this becomes genuine development or just another extractive corridor. The contract's 3% revenue share and job commitments are mechanisms meant to ensure public benefit from private infrastructure, but La República's concerns about oversight and spending guarantees highlight the enforcement challenge. This is ProInversión's first project as granting authority, making accountability structures untested. The five-month suspension showed how corporate disputes can freeze investments that affect workers and families far from boardrooms.