MercoPress. South Atlantic News Agency

Construction of Chinese multipurpose mega port in Peru runs into trouble

COSCO is building a 1.8 km tunnel under a residential neighborhood in the city of Chancay to connect the port with a highway

Peru's Prosecution Office has launched an investigation into China’s COSCO Shipping Ports Ltd after a landslide at one of the company’s tunnel construction sites at the major mega-port of Chancay in the country. The incident, which took place in the coastal province of Huaral, damaged at least four houses near the tunnel and forced the company to suspend construction.

The prosecutor’s office said on its Twitter account that it has started a preliminary investigation into individuals at the company that it said may bear responsibility.

COSCO Shipping Ports did not immediately respond to a request for comment.

As part of the project, COSCO is building a 1.8 km tunnel under a residential neighborhood in the city of Chancay to connect the port with a highway. The US$ 1.3 billion project’s first stage is set to be completed by the end of next year.

The prosecutor’s office also said it has asked the company to report on works it has been carrying out “under the penalty of being denounced for disobedience to authority.”

The port is envisioned as a hub along Peru's coast with the purpose of facilitating more trade with Asia, and is expected to become a colossal infrastructure that will transform the 65,000 people former fishing village into a milestone of China's increasing trade and influence in Latin America.

The multipurpose port, some 80 kilometers north of Lima will ship mostly minerals and commodities to China and is bound to become a crucial outpost for international trade along the Pacific basin.