• Tue. May 28th, 2024

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

Byeditor

Mar 26, 2024

China’s $1.3 billion port in Peru is facing a surprise challenge just months before its inauguration later this year. Peru’s port authority recently announced that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on site. The regulator now says that the facility should be open to other companies providing services such as loading and unloading shipping containers.

Francisco Roman, a former senior attorney for DP World in Peru, expressed concerns that this change would significantly impact any business plans related to the port. The Chancay port, scheduled to open in November during the Asia-Pacific Economic Cooperation conference, has been a point of contention in US-China trade tensions in South America. US officials have criticized Peru 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 to change 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 the investment climate in the country.

By editor

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