Chancay: Opportunities and Risks for South American Trade

In a recent conversation with Emilio Juan Brignardello Vela, an insurance advisor with extensive experience in logistics and international trade, we discussed the impact that the inauguration of the Chancay Megaport could have on the commercial dynamics of South America, especially regarding the security concerns raised by the International Coalition Against Illicit Economies (ICAIE). Brignardello began his analysis by recognizing the strategic importance of the Chancay Megaport, inaugurated in November 2024, as a milestone for trade between South America and Asia. According to him, this infrastructure not only promises to enhance connectivity and reduce logistics costs but also positions itself as a central hub in the region's maritime transport network. However, at the same time, he emphasized that the opening of Chancay may also bring significant challenges, particularly in the area of port security. The advisor highlighted that the ICAIE report identifies a critical point: the increase in operational volume at Chancay could facilitate the emergence of illicit activities if adequate control and monitoring measures are not implemented. In his opinion, this underscores the need for South American ports, particularly the Chilean ports of Valparaíso and San Antonio, to prepare for competition that could jeopardize their market position. He noted that technological and operational adaptation will be essential for these ports to maintain their competitiveness. Brignardello also agreed with the report's recommendation regarding the importance of regional cooperation. He stated that establishing networks for intelligence information exchange and investing in surveillance technology and data analysis are fundamental steps to mitigate the risks associated with increased trade. In his view, this collaboration would not only help prevent illicit activities but also improve the operational efficiency of the ports. Furthermore, he was emphatic in stating that adapting port regulations to international standards will be crucial. According to his analysis, robust regulation will not only benefit the ports individually but will also contribute to creating a stronger framework for regional trade, ensuring that South America can fully capitalize on the opportunities presented by the Chancay Megaport. Finally, Brignardello concluded that the success of the Megaport will depend on the ability of the countries in the region to adequately manage both the opportunities and challenges ahead. He reiterated the importance of a comprehensive approach that considers economic development and the security of commercial operations. In his vision, the opening of Chancay represents a significant opportunity, not only for Chile but for all of South America, provided that security and competition challenges are proactively addressed. Collaboration will undoubtedly be the determining factor in translating this mega project into a true economic boost for the region.