Peru's government has resolved a five-month standoff that threatened to derail a US$404.8 million port terminal on the country's southern coast, clearing the way for Chinese company Jinzhao to move forward with infrastructure that promises to reshape regional logistics.
A land deal signed Thursday between ProInversión, Peru's investment promotion agency, and Shougang Hierro Perú ended a dispute that had suspended the Marcona port concession since April. The Chinese-owned iron miner had held mining rights over part of the proposed port site, blocking the project's progress and raising questions about contract stability.
The Standoff
Shougang has operated iron mines at Marcona since 1992, when it purchased the state company Hierro Perú. It ships ore through its own private terminal at San Nicolás. The concession contract with San Juan Port S.A., part of the Jinzhao group, was signed on 31 March but suspended just 16 days later on 16 April because the project area couldn't be handed over. Part of that land lay inside Shougang's mining concessions.
The conflict wasn't just legal. During the attempted handover on 16 April, Shougang staff physically blocked access to the site, according to business weekly SEMANAeconómica. ProInversión and the transport ministry argued the land had belonged to the state since 1948, before the Marcona mining concessions were granted. Shougang insisted 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, known as MTC, keeps title to the land. The deal allows the suspension to be lifted, the site to be delivered and engineering work to begin.
The Investment
The 30-year concession 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.
Estimates for that first stage vary. Gestión put it at more than US$271 million. Reuters quoted Transport Minister José 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, including 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 will 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.
China's Growing Footprint
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.
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." Tangherlini said the terminal will serve 29 provinces and 280 districts in Ica, Ayacucho, Arequipa, Apurímac and Cusco. It will 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. The government has promised 1,500 direct and indirect jobs in the first five years. ProInversión estimates the 3% fund will raise more than 290 million soles, about US$85 million, over 25 years.
Skepticism Remains
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.
A longer delay could have triggered a clause allowing the contract to be terminated, SEMANAeconómica warned in July. ProInversión called that risk low at the time. For investors, the deal clears the way to unfreeze a concession that had been stuck for five months. For southern regions such as Apurímac and Cusco, the terminal promises a new route to the sea for mineral and other cargo. Peru is one of the world's biggest copper producers, Reuters noted. The ministry calls the project a matter of public necessity and utility.
Watch for the formal lifting of the contract suspension and the handover of the site to San Juan Port. Engineering studies and permits come next, with construction targeted for 2027.
Why This Matters:
The resolution demonstrates Peru's ability to enforce property rights and contract stability, essential ingredients for attracting the foreign capital the country needs for infrastructure development. The five-month standoff exposed real risks in Peru's concession process, particularly when state agencies assume new regulatory roles without established precedent. For investors watching Latin America, the outcome matters: contracts held, legal disputes were resolved, and a major project moves forward. The terminal will serve Peru's mining sector, one of the world's largest copper producers, by offering southern regions a new export route. That's concrete economic benefit. But the deal also deepens Chinese infrastructure control in Peru, following the Chancay megaport. The long-term strategic implications of foreign-controlled ports handling critical mineral exports deserve scrutiny, even as the immediate economic case remains sound.