From the Port Enclave to the Shared Territory: Port-City Integration Challenges in Valparaíso

22 Dicembre, 2025

Valparaíso: A unique case of a port-city at the Chilean crossroads

Chile is going through a historic transformation towards economic decarbonization, where green hydrogen and renewable energies emerge as catalysts for change. Three strategic territories are leading this transition: the Antofagasta Region, with Mejillones as the industrial epicenter; the central macrozone – made up of the Metropolitan, Valparaíso and O’Higgins regions – which concentrates the main centers of consumption and productive sectors; and the Magallanes Region, with its exceptional wind potential and privileged access to global maritime routes. In this scenario, Valparaíso and its metropolitan urban system acquire renewed strategic relevance as a fundamental logistics node. Port cities face critical challenges—infrastructure obsolescence, operational congestion, and climate pressures—but simultaneously find opportunities in the blue economy, positioning themselves as nodes of global trade that must balance economic growth with territorial sustainability.

Understanding Valparaíso’s role in this transition requires placing it in its historical and territorial context. The city was erected as the “Jewel of the Pacific” from the nineteenth century to the beginning of the twentieth, functioning as the main center of commercial and financial exchange on the western coast of South America. Its decline began with the earthquake of 1906 and, crucially, with the opening of the Panama Canal in 1914, which reoriented international shipping lanes. The regionalization process implemented during the military regime decisively configured a new relationship between Santiago and Valparaíso: the Metropolitan Region was delimited without a coastline precisely to enhance regional economic development to the west. This decision, together with the subsequent installation of the National Congress in Valparaíso in 1990, reinforced the complementary nature of both territories. Although the city has not recovered its former splendor, the coastal territory has intensified and diversified as a functional extension of the capital region.

Today, Santiago, the national capital, articulates the most extensive interregional urban system in the country, made up of Valparaíso, San Antonio, San Felipe-Los Andes, and Rancagua—a territory historically identified as the “Central Macrozone of Chile”—which concentrates a significant portion of the national population, GDP, and employment (Moris & Siembieda, 2021). Within this system, the metropolitan area of Valparaíso constitutes the second largest urban agglomeration in the country, with approximately 1.23 million inhabitants (Census 2024). Made up of Valparaíso, Viña del Mar, Concón, Quilpué and Villa Alemana as the central nucleus, and functionally integrating Quintero, Puchuncaví, Casablanca, Limache, Olmué, Quillota and La Calera, it configures a polycentric territory where port activity has historically been structuring.

The uniqueness of Valparaíso lies in the overlapping of its port condition with its recognition as a World Heritage Site by UNESCO in 2003. This dual identity generates structural tensions: the need to modernize the infrastructure to maintain international competitiveness in the face of emerging ports such as Chancay, together with the obligation to preserve the values that founded its inscription on the World Heritage List. The case illustrates the characteristic contradictions of the Chilean model of territorial development, marked by frictions between economic growth and equity, free market and social focus, centralism and decentralization.

The Chilean port model, derived from the 1997 reform, established a “leasing port” scheme where the State retains ownership of the infrastructure while the operation is concessioned to private parties through public bidding, with maximum terms of 30 years (Piraino et al., 2018; Weidenslaufer, 2023). This model has allowed significant investments in modernization, but it has generated challenges in port-city coordination, particularly because the legislation did not contemplate territorial integration mechanisms or consider the specificities of cities with heritage value. The culture of reactive adjustment rather than prospective planning, characteristic of the Chilean model, is clearly reflected in Valparaíso’s trajectory.

Central Macro Zone of Chile. Urban systems of the of Santiago, Valparaíso and O’Higgins regions. (Source: Elaboration Roberto Moris, 2025).

Evolution of port-city relations (2000-2025)

The last 25 years have witnessed significant transformations in the port-city relationship of Valparaíso, marked by three fundamental milestones: the heritage designation of 2003, the creation of institutional coordination mechanisms, and contemporary reforms to the territorial planning system. The inscription on the World Heritage List marked a turning point: while international recognition boosted tourism and reinforced the local porteño cultural identity, it also introduced regulatory restrictions that complicated port expansion projects. The declared area included strategic sectors of the waterfront, generating zones of friction between the port’s operational requirements and heritage conservation demands (ICOMOS, 2013).

The institutionalization of the Port-City concept materialized through Port City Coordination Councils, spaces designed to harmonize urban and port interests through the participation of local authorities, port companies, and community representatives. In Valparaíso, this mechanism has allowed for progress in specific waterfront regeneration projects; however, its effectiveness has been limited by the absence of binding powers and the fragmentation of institutional competencies. This limitation reflects a broader pattern in the Chilean planning system: indicative devices have failed to fulfill their guiding role because compliance is not mandatory, opening possibilities for ambiguity in the planning regime.

The Valparaíso Region has had the Valparaíso Metropolitan Regulatory Plan (PREMVAL) since 1996, which was fully updated in 2014 and subject to subsequent partial modifications in the areas of industrial-port development, natural risk management and the planning of territorial sections through Satellite Intercommunal Plans. For its part, the new Regional Territorial Planning Plan (PROT), designed to reconcile projects on a regional scale under principles of sustainability and social integration, remains unimplemented in the region due to a lack of regulation – a situation that shows the mutual distrust between those who demand legal certainty for industrial development and those who fear that it will be insufficiently regulated.

The period 2012-2024 intensified accumulated structural tensions: extensive low-density urban expansion, accelerated consumption of rural and peri-urban land, persistent water crisis, and acute socio-environmental conflict in areas such as Quintero-Puchuncaví – historically described as a “sacrifice zone” and today an emblematic territory of the national energy transition. These processes, aggravated by the institutional fragmentation of the Metropolitan Urban System, have had a direct impact on the postponement of strategic infrastructure projects.

Such is the case of the expansion of the port of Valparaíso, whose viability is currently articulated around the “Agreement for Valparaíso”: a pact signed between the Valparaíso Port Company (EPV), the Regional Government and the Municipality, aimed at promoting port expansion through an investment of US$850 million aimed at doubling operational capacity to reach 2.1 million TEUs per year.

Lessons learned

The Valparaíso case offers relevant lessons for other port cities facing similar challenges in reconciling logistical development, heritage preservation, and urban quality of life. Experience demonstrates that voluntary and non-binding coordination mechanisms are insufficient to address the structural tensions between port and city. Bodies with real decision-making power are needed, integrating national, regional, inter-municipal, and local levels, overcoming the institutional fragmentation characteristic of the current system. Contemporary port governance cannot be understood solely in terms of economic efficiency; it must be conceived as a relational system where logistical, urban, environmental, and citizen interests converge in constant negotiation.

A fundamental pattern of the Chilean model is the tension between centralism and decentralization, with a unitary presidential state that operates essentially through a sectoral structure. This leads to fragmented, non-integrated investments aimed at achieving goals such as decentralization and equity. Future regional planning instruments should have governance mechanisms capable of integrating diverse territorial scales, providing methods sensitive to the trends shaping city-regions.

The historical disconnect between Port Master Plans and urban planning instruments has limited the potential of joint projects and generated avoidable conflicts. International experience with ports such as Rotterdam, Hamburg, Barcelona, and Singapore demonstrates that the early integration of both planning approaches is a necessary condition for sustainable development, based on effective institutional coordination, strategic citizen participation, adaptive regulatory flexibility, and a long-term vision that transcends political cycles.

The Chilean experience offers an additional lesson: during the decade in which the Port Master Plan (PROT) was formalized, the Ministry of the Interior was conducting studies in all regions while the Ministry of Housing and Urban Development (MINVU) continued designing Urban Development Plans (PRDU) in the same territories, resulting in the mutual cancellation of both instruments.

The tension between heritage and port development can be transformed into synergy when creative approaches to urban regeneration are adopted. The conversion of historic port areas to mixed uses, as has occurred in successful European cases, allows for the preservation of heritage values while generating new economic and social dynamics. Valparaíso has the potential to develop its own model that integrates modern port activities with the urban regeneration of its historic waterfront, transforming the UNESCO designation from a perceived restriction into a differentiating asset.

The future of the port-city relationship in Valparaíso will be determined by the ability to formulate responses to converging challenges: the ongoing modernization of the territorial planning system, adaptation to climate change and the energy transition, and the construction of effective metropolitan governance that overcomes decades of institutional fragmentation. Fundamentally, it will depend on understanding the region’s strategic role for the country and the central macrozone, given its critical port and logistics infrastructure located in the bays of Valparaíso, San Antonio, and Quintero-Puchuncaví.

The central macro-region, which concentrates the country’s main consumption centers and productive sectors, is a key territory in the transition to a decarbonized economy. Chilean economic history offers crucial lessons: the 19th-century nitrate boom, based on the exploitation of finite resources, generated temporary wealth but not sustainable territorial development. Today, the abundance of renewable energy opens unprecedented possibilities for building a paradigm where economic prosperity is founded on environmental sustainability (Ministry of the Environment, 2025). Chile has become a world leader in renewable energy, with the goal of reaching 60% clean energy by 2035.

The energy transition must be framed within growing environmental challenges. Chile is estimated to be among the 30 countries with the greatest water risk in the world: lack of rainfall, glacial retreat, and an excess of private water rights are shaping a future of water stress that will require efficient demand management, ecosystem conservation, and new sources of supply. For Valparaíso and the central macrozone, this challenge has direct implications for port operations and urban sustainability, given that green hydrogen production requires significant volumes of water.

The vision for the future envisions Valparaíso’s evolution into an Advanced Port Productive Ecosystem, characterized by effective multimodal integration, sustainability and progressive energy autonomy, social and urban cohesion between the port and the city, multilevel governance with genuine citizen participation, and smart and resilient infrastructure. This model transcends the concept of the port as an enclave, positioning it instead as an integrated component of territorial systems that generate shared value.

The concept of smart territories transcends conventional urban digitization, implying the creation of spaces where the energy industry, technological development, applied research, and innovative entrepreneurship converge. This vision requires overcoming the traditional separation between industrial and urban zones, moving towards models where production hubs coexist harmoniously with high-standard cities. Redevelopment zones and master regeneration plans are crucial tools for transforming obsolete port areas into new urban centers, following the example of Santiago, where the growing interest in living in central areas with multiple amenities has led to densification along transportation corridors and a shift in the tenure model towards rental housing.

Chile is one of the countries most exposed to climate change, given its high concentration and diversity of socio-natural disasters. Valparaíso, with its exposure to seismic risks, tsunamis, forest fires, and extreme hydrometeorological events, requires that urban resilience be recognized as a tool for territorial development. One of the pending issues is work at the community level: organized communities with knowledge of their threats have demonstrated a better capacity to respond, and in major events where metropolitan operations may be affected, the autonomous and collaborative functioning of neighborhoods and districts will be critical.

Valparaíso embodies the tensions and opportunities that define the agenda of 21st-century port cities globally. Its heritage status, far from being an insurmountable obstacle, can become the foundation of a distinctive port-urban development model that integrates logistical efficiency, cultural preservation, and quality of life. In the context of the historical crossroads facing Chile, where the energy transition offers the possibility of rewriting the national economic trajectory, Valparaíso has the opportunity to demonstrate that economic prosperity, environmental preservation, and social well-being are not conflicting objectives, but rather complementary dimensions of truly integrated territorial development.

The success of this transformation will depend on the ability to build an integrated and resilient governance that overcomes historical institutional fragmentation, prioritizes investments in logistics solutions that release pressure on the urban heritage fabric, and adopts a sustainability agenda capable of transforming legacy environmental liabilities into opportunities for innovation and shared social benefit. To this end, it is essential to move towards a strategic Port City Plan that articulates regulation, investment, management and monitoring actions under a collaborative public-private approach, taking advantage of the technological capabilities that the country has today in an intelligent and prospective manner.

Valparaíso can evolve from a closed enclave to a shared territorial network, from hierarchical control to deliberative, multi-level governance, from a sealed space to porous, co-created, and resilient territories. Only through this profound transformation will logistical efficiency translate into lasting territorial equity, simultaneously honoring its universal heritage and its foundational port vocation that has defined it for over four centuries.


HEAD IMAGE | View of Valparaíso Bay and its amphitheater of hills. (© Roberto Moris, 2011).


REFERENCES

CENSO (2024). Censo de Población de Chile. Instituto Nacional de Estadísticas.

ICOMOS. (2013). Report on the Advisory Mission to the Historic Quarter of the Seaport City of Valparaíso (Chile).

GORE Valparaíso (2025). Estrategia Regional de Desarrollo de Valparaíso. Gobierno Regional de Valparaíso.

Ministerio de Medio Ambiente. (2025). Estrategia Nacional de Transición Socioecológica Justa. https://mma.gob.cl/.

Moris, R., & Siembieda, W. (2021). The Santiago de Chile Metropolitan System: Transformative Tensions and Contradictions Shaping Spatial Planning. In The Routledge Handbook of Regional Design (pp. 194-213). Routledge.

Piraino, E., Lopez, M., & Moreno, C. (2018). Gobernanza e institucionalidad del sistema portuario chileno: aplicación a Puerto Valparaíso. PORTUS: The Online Magazine of RETE, 36.

Weidenslaufer, C. (2023). BCN Gestion de puertos comparado Chile y Peru.



Article reference for citation:

MORIS ITURRIETA, Roberto. “From the Port Enclave to the Shared Territory: Port-City Integration Challenges in Valparaíso”. PORTUS | Port-City Relationship and Urban Waterfront Redevelopment, 50 (December 2025). RETE Publisher, Venice. ISSN 2282-5789.
URL: https://portusonline.org/from-the-port-enclave-to-the-shared-territory-port-city-integration-challenges-in-valparaiso/

MORIS ITURRIETA, Roberto. “Del enclave portuario al territorio compartido: Desafíos de integración puerto-ciudad en Valparaíso”. PORTUS | Port-City Relationship and Urban Waterfront Redevelopment, 50 (December 2025). RETE Publisher, Venice. ISSN 2282-5789.
URL: https://portusonline.org/from-the-port-enclave-to-the-shared-territory-port-city-integration-challenges-in-valparaiso/

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