Talcahuano, city and port in central Chile, on Concepción Bay. It is near the city of Concepción, for which it is the port. The harbor, the finest along the Pacific coast of South America, accommodates large ships and is also the site of the principal Chilean naval base; nearby is the country's naval academy. The fishing industry employs a large segment of the population, and fish are canned and exported. Other industries include flour milling and petroleum refining; nearby is a large steel plant. The city is connected by rail to Concepción, Santiago, and Valdivia. In 1835 an earthquake damaged the city severely. It underwent rapid expansion and industrialization in the 1950s, but again was struck by earthquakes in the 1960s. Population (1998) 277,752.