Chile's Military Strategy

Chile's plan was simple. The squadron would sail to Callao, where they would destroy the Peruvian ships. The army would capture Antofagasta, disembarking at Tarapacá. Having destroyed the Peruvian fleet, Chile would block the port at Callao, and occupy Tarapacá. By so doing, they would control the coast of Peru and all trade. This would force Peru to sign a peace treaty with terms favorable to Chile. The Chilean fleet planned to head to Callao under secrecy, placing itself in position to strike at the same time the cable arrived with the declaration of war.

On April 2nd, 1879, the Chilean congress authorized war and on April 5th the declaration of war was made, giving the Chilean squadron the time to reach Callao. However, the Chilean plan did not come to fruition as planned.

Instead, Admiral Juan Williams Rebolledo, commander of the Chilean fleet, decided to blockade Iquique and began bombardments on undefended ports along the coast of Peru. Thus, his fleet remained at the port of Iquique from April 5 to August 5 of 1879. Reportedly, his plan was to induce the Peruvian ships to leave the protection of the docks in Callao, so that they could be engaged at sea.

Admiral Juan Williams Rebolledo
Painting by Manuel Antonio Caro (1835-1903)

Source -- Wikipedia