China’s $1.3 billion port in Peru faces challenges as exclusivity concerns mount

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

In a surprising turn of events, Peru’s $1.3 billion port in China is facing challenges just months before its scheduled inauguration later this year. It has been revealed that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on the site. The regulator now states 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, has expressed concerns about this change and its potential impact on any business plans related to the port. The Chancay port, which is set to open in November during the Asia-Pacific Economic Cooperation conference, has become 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 their 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 has 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 its impact on investment climate in country.

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