Peru and Cosco Shipping, a state-owned company from China, have come to an agreement regarding the operational model of the Chancay port, valued at $1.3 billion, prior to a bilateral presidential meeting.
Cosco Shipping, which has been constructing the port near Lima with the expectation of being its sole operator upon its opening in November, faced legal challenges from Peruvian government lawyers. These challenges were based on claims that the port should be open to various service providers for tasks such as the loading and unloading of shipping containers. Despite initial opposition from Cosco, Chinese financiers, and Peruvian industry organizations, who highlighted that exclusive operators are standard in Peru's port sector, an accord has now been reached.
According to Juan Carlos Paz, head of Peru's port authority, the exclusivity of Cosco Shipping's operation has been confirmed, and the lawsuit will be withdrawn. A representative from Chancay port affirmed the resolution's benefits for both the port and the maritime industry at large. President Dina Boluarte of Peru, who is currently in China, is set to meet with Cosco officials and President Xi Jinping. The Chancay port is anticipated to significantly impact trade between South America and Asia by reducing travel times for freight ships. This development occurs amidst heightened US-China tensions in the region and coincides with Peru's hosting of the Asia-Pacific Economic Cooperation leaders' summit later this year.
Source: bnnbloomberg.ca