Exclusivity Challenge Threatens Peru’s $1.3 Billion Port in Chancay

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

Peru’s $1.3 billion port in Chancay, scheduled to open in November during the Asia-Pacific Economic Cooperation conference, is facing a surprise challenge just months before its inauguration. The regulator recently announced that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on site. However, the facility should be open to other companies providing services such as loading and unloading shipping containers.

This change has raised concerns among business leaders who have plans related to the port. Francisco Roman, a former senior attorney for DP World in Peru, expressed his fears that this exclusivity would significantly impact any business plans related to the port. The Chancay port, which has been a point of contention in US-China trade tensions in South America, has been criticized by US officials for allowing a state-owned Chinese company to undertake such a major infrastructure project while Peruvian authorities have defended the decision by pointing out the lack of similar investments from US firms in the region.

Despite this setback, Transportation and Communications Minister Raul Perez Reyes confirmed that the Chancay port will still be inaugurated in November. The government is working on changing regulations to address the issue of exclusivity, which is a common practice in Peru’s port operations. With plans to create a direct trade route between Chancay and Shanghai, the port has the potential to transform South American trade in the future. Cosco Shipping has criticized Peru’s challenge to its exclusivity, citing it as a key factor in their decision to invest in the port and expressing concerns about the impact on investment climate in country.

Peru’s $1.3 billion port in Chancay, scheduled to open in November during the Asia-Pacific Economic Cooperation conference, is facing a surprise challenge just months before its inauguration. The regulator recently announced that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on site. However, the facility should be open to other companies…

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