Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy
Business

Surprise Challenge Threatens Peru’s $1.3 Billion Chancay Port Ahead of Asia-Pacific Economic Cooperation Conference

Peru’s $1.3 billion port in Chancay, set to open in November during the Asia-Pacific Economic Cooperation conference, is facing a surprise challenge from regulators just months before its inauguration. The regulator has ruled that Cosco Shipping’s Chancay port should be open to other companies providing services such as loading and unloading shipping containers, overturning the facility’s exclusivity granted earlier.

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 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 investment climate in the country.

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