China’s $1.3 Billion Port in Peru Faces Unexpected Challenge: Exclusivity Controversy Threatens to Delay Inauguration

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

Peru’s port authority has faced a surprise challenge just months before the inauguration of China’s $1.3 billion port in November. The regulator recently announced that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on site. As a result, 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, expressed concerns about this change and its impact on business plans related to the port. The Chancay port, which has been a point of contention in US-China trade tensions in South America, will still be inaugurated in November despite the setback. The government is working to change regulations to address the issue of exclusivity, which is a common practice in Peru’s port operations.

Despite this setback, Transportation and Communications Minister Raul Perez Reyes confirmed that the Chancay port will still be inaugurated in November. 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 the investment climate in the country.

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