We’ll Scrap Cosco Exclusivity In Megaport Deal: Peru

Peru's port authority expressed its intention to rectify an "administrative error" that granted China's Cosco Shipping exclusivity over operations at the new Chancay megaport, reported Marco Aquino for Reuters.

The $3.5 billion megaport aims to become a hub in the South American Pacific but has posed a challenge for the US and Europe as they seek to counter the Chinese rise in Latin America. I Photo: COSCO SHIPPING Lines

The National Port Authority (APN) stated last week that it has requested the annulment of its decision made in February 2021 that granted Cosco exclusivity, through a judicial process.

The authority clarified that the legal process would not affect the port's construction in northern Peru and that it still plans to commence operations at the end of the year.

The $3.5 billion megaport aims to become a hub in the South American Pacific but has posed a challenge for the US and Europe as they seek to counter the Chinese rise in Latin America.

"The construction process and the future operation of the Chancay Port Terminal will not be affected," the statement assured.

"The APN will continue to collaborate with Cosco Shipping Ports to ensure operations commence on the established date." APN stated it lacks the authority to grant exclusivity and aims to "correct an error in an administrative act."

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