By The Financial District
Mar 311 min
China’s $1.3 billion port project in Peru faces an unexpected challenge that could disrupt its business model, just months before its scheduled inauguration later this year, Marcelo Rochabrun reported for Bloomberg News.
Peru’s port authority recently announced that Cosco Shipping’s Chancay port had been mistakenly granted exclusivity over the services to be offered on-site. I Photo: COSCO SHIPPING Lines EXPO
Peru’s port authority recently announced that Cosco Shipping’s Chancay port had been mistakenly granted exclusivity over the services to be offered on-site.
Now, the regulator insists that the facility should be open to other companies providing services such as loading and unloading shipping containers. US officials have criticized Peru for allowing a state-owned Chinese company to construct such a large infrastructure project in the country.
In response, Peruvian authorities argue that US firms are not willing to make similar investments in the region as Beijing.
Cosco criticized Peru’s decision, stating that securing exclusivity over services was a significant factor behind the company’s decision to fund the port. It added that Peru’s challenge negatively impacts the investment climate in the country.
“This would evidently alter any business plan,” said Francisco Roman, a former senior attorney for DP World in Peru, which exclusively operates the largest container terminal in the country.
The Chancay port, set to open in November coinciding with Peru hosting the Asia-Pacific Economic Cooperation conference, has become a focal point for US-China trade tensions in South America.